Hackettstown, NJ asked in Estate Planning and Real Estate Law for Pennsylvania

Q: NJ Siblings need to set up an LLC for a vacation house in PA and need to know proper protocol and procedures.

Three NJ resident siblings want to set up a LLC for their recenltly inherited vacation home in Paupack PA in order to spell out financial responsibilities, succession rules, and regulations for using the property. With the approval of the others, one sibling had a NJ lawyer produce a LLC for preliminary review. Later, one of the siblings said his Income Tax preparer told him that the LLC can only be written by a PA lawyer. What is the proper process for handling this LLC?

1 Lawyer Answer
W. J. Winterstein Jr.
PREMIUM
Answered

A: While I think it possible that your sibling misunderstood that the tax preparer (CPA?) actually said, in forty-years of practice, I have never heard of a PA law or rule governing or limiting who may draft LLC documents (other than perhaps the PA Bar, which governs who may practice law within PA).

On the contrary, the legal burden is upon the one or more who actually sign any such submitted documents (other than perhaps for provable malpractice of the scrivener).

While a PA lawyer may be more familiar (just by location), many if not most NJ lawyers are licensed to practice in PA (they take both bar exams upon graduation from law school) and vice versa, a NJ lawyer who undertakes to prepare such docs and application is presumably competent to do so.

Bottom line- without having reviewed the work of the NJ lawyer, you should be fine. If you or your siblings are uneasy, you are certainly free to engage PA counsel to review any work/docs prior to filing.

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