What We Confirm Before Closing
Before closing, we generally need to confirm:
- The LLC is active.
- The LLC is in good standing, and obtain a current Certificate of Good Standing.
- Whether the LLC is Member-Managed or Manager-Managed.
- Who the legal Members and/or Managers are, and who has authority to sign for the LLC.
- The LLC's Tax ID Number (EIN).
Why Do We Need the Operating Agreement?
A state's business records may tell us that an LLC exists, but they don't always tell us who owns the company or exactly who has authority to sign for it.
That's where the Operating Agreement becomes important.
If the Operating Agreement lists multiple members, requires more than one person's approval, or doesn't match the information we've been provided, we have to resolve that before the yacht can close.
The bottom line
We're simply verifying:
- Is the company active?
- Who owns or manages it?
- Who has authority to sign?
- And does the paperwork support that authority?
Usually, it's quick.
The delays happen when we discover at closing that the person ready to sign isn't the person the LLC documents say can sign. ⚓
Related reading: how our vessel closings work and things you need to know.
Official sources
Requirements change. Confirm current requirements with the applicable agency or a qualified professional for your specific transaction.