The LLC Doc Checklist: Every Document Your Lender Needs Before You Apply

One of the most common reasons a hard money loan closes late — or doesn't close at all — is missing entity documents. Not because the deal was bad. Not because the borrower wasn't qualified. Because an operating agreement wasn't current, or an EIN letter was from a dissolved entity, or a bank statement had the wrong account name on it.

These are entirely preventable delays. If you're borrowing through an LLC (which you should be), here is exactly what most lenders — including SGC — will need from your entity before we can issue a term sheet and move toward closing.

1. Articles of Organization (or Certificate of Formation)

This is the founding document of your LLC — the state-issued certificate confirming the entity legally exists. It includes the legal name of the LLC, the state of formation, the formation date, and the registered agent.

What to watch for:

• The LLC name on the Articles must match exactly what appears on your purchase contract and closing documents
• If you formed in one state but are buying in another, you may need a Certificate of Authority (foreign entity registration) for the state where the property is located — not all lenders require this, but some title companies do
• If your LLC was formed more than a few years ago, check that it's still in good standing with the state (most states have a searchable entity database)

2. Operating Agreement

The operating agreement is the internal governance document of your LLC. It spells out who owns what percentage, who has authority to sign on behalf of the entity, and how decisions are made. Lenders need this to confirm that the person signing the loan documents actually has authority to bind the entity.

• Must be signed by all members
• Should clearly state who is the "Managing Member" or who has signing authority
• If you've added or removed members since formation, you need an updated operating agreement — not a verbal amendment
• Single-member LLCs still need an operating agreement, even though it may seem redundant

3. EIN Confirmation Letter (IRS Form CP-575 or 147C)

Your Employer Identification Number (EIN) is the LLC's tax ID — the equivalent of a Social Security number for your business. Lenders need this to pull a business credit profile and to structure the loan correctly for tax purposes.

• The CP-575 is the original letter the IRS mails when you apply for an EIN. If you can't find it, you can request a 147C letter by calling the IRS Business & Specialty Tax Line at 800-829-4933
• The name on the EIN confirmation must match the legal name of your LLC exactly
• If you've changed the LLC's name since formation, you'll need documentation showing that change along with your EIN confirmation

4. Business Bank Statements (Last 3 Months)

Most hard money lenders, including SGC, are asset-based lenders — which means we care more about the deal than your income. But we still need to confirm that your LLC has an active business banking relationship and that down payment funds are available.

• Must be statements from a business account — not a personal account, even if you're a single-member LLC
• The account name must match the LLC's legal name
• Provide the last 3 months of complete statements, all pages
• Large recent deposits may require a brief explanation (source of funds)

5. Government-Issued ID for All Signing Members

Every person who will sign loan documents needs to provide a valid government-issued photo ID — driver's license or passport. If your LLC has multiple members who are all signing, each one needs to provide ID before closing.

6. Prior Real Estate Experience (Track Record)

This isn't always a hard requirement, but a one-page list of prior deals significantly improves your position with the lender. Include:

• Property address
• Purchase price
• Renovation cost
• Sale price or current rental income
• Closing date

For new investors: don't fabricate experience. Instead, detail any construction or real estate background, and come prepared with a solid scope of work and a credible contractor. SGC has funded first-time investors — the deal has to make sense, and you need to demonstrate you understand what you're getting into.

7. Purchase Contract (Once You're Under Contract)

As soon as you have a signed purchase and sale agreement, send it immediately. The contract sets the timeline, and lenders work backward from the closing date to schedule underwriting, appraisal, and title work. The sooner we have the contract, the more time we have to work with.

• The buyer name on the contract must match the LLC name — not your personal name
• If you need to assign the contract to your LLC, this must be done before closing
• Include all addenda and counteroffers — the contract isn't complete without them

Full Checklist at a Glance

One Final Note: Entity Good Standing

Before you submit your deal, take 5 minutes to verify your LLC is in good standing with the state where it was formed. Most states have a free online search tool. An LLC that has lapsed or been administratively dissolved cannot legally enter into a loan agreement — and discovering this at closing will kill your deal on the spot.

If your entity has lapsed, reinstatement is usually a straightforward process, but it can take 1–2 weeks depending on the state. Don't find this out the day before closing.