Just Starting Out - Business Formation
Hey everyone! First post here. I am interested in BRRRRing and have already purchased and completed the BP book on the subject, listened to the podcast episodes related to it, attended a seminar for this, etc. I am still in the "education" and "building capital/credit" phase of my journey, but am looking to get an action plan in motion as well to lay the groundwork for a series of tasks, goals, and milestones to eventually achieve financial independence using this method.
My girlfriend is also very interested in doing this. I have income potential and she has excellent credit but little income. We were thinking of partnering, but want to make sure we do it "the right way" to compartmentalize business vs. personal interests (we're both very capable of doing this emotionally and I trust her completely in that regard). From a business standpoint though, we're not sure the best way to go about this.
I was thinking really there are 2 options... one, we form an LLC together in which we're both partners, she infuses the capital, and the 2 of us work together to get properties where, as managing partners, we split the profits in a very standard business way. Standard partnership legalese about splitting money, leaving/buyouts, etc. Option 2, we form separate LLCs and have a written contract between our LLCs that renews yearly in which we "leap frog" purchases using her personal capital, but we both fully assist the other as per the contract, lending our best efforts to help facilitate the entire process for each purchase, even though the purchases would be owned separately under independently owned/operated LLCs. Makes possible future breaks a lot easier to deal with, without dividing up or complicating things legally.
What have other partnerships done in similar situations? Any suggestions/recommendations?
I understand about *actual legal advice* and needing to confirm with a lawyer, etc. but any input would be appreciated.
Best Regards,
Aaron