Partnership structure examples

[John Jasko]

I’m looking for advice or literature on recommended business partner structures. Specifically where one partner brings most of the financial resources and the other partners and do the on-site work such as property management and renovations.

[Jason Marino]

Hi John,

The common ways of addressing this situation would be with a Joint Venture Agreement or by creating an LLC with a custom created Operating Agreement with your partner. The Joint Venture Agreement is the less formal and less costly option. This document would help to avoid and address internal disputes that were discussed in the posts above. However, it will not provide any asset protection. The LLC can provide the same level of detail as the Joint Venture Agreement to avoid and address internal disputes, but it can additionally be useful in protecting the assets that you and your partner control. I would recommend that you contact an attorney if you want to proceed with either of these options.