I am an American citizen living in Japan and recently two non-US friends have expressed an interest in buying some investments with me. Basically, I would be getting the loans and putting up some of the money and they would be putting up the rest of the cash. How can we do this? Should we set up an LLC or some other entity? Any advice on how to do this right?
YOU are getting the loans? In your name?
If you don't have 100% complete trust in these guys, I'd say don't do it unless you're willing to take over 100% of the responsibility.
But on the other hand, if they are putting in their share of the deal with cash, and you're just financing your portion, maybe it's not the worst thing in the world.
This could get complicated, so I'd say set you should use some kind of corporate entity. Because they are not US citizens, the type of entity might be different than a multi-member llc. You should speak with an attorney to give you the best guidance on setting up the partnership. I have a really good attorney that's done several of these types of setups with non-US citizens and I'd be happy to give you a referral. Hit me up if you're interested.
Thanks for the advice. I have contacted a lawyer in my area (where I invest), but I will let you know if I need a referral.
Has anyone done a deal with a partner before? How do you usually structure them?
I'm in a similar boat, but don't have any answers just yet. Where are you in Japan? We should sync up
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