My partner and I are planning to start our LLC within the next 2 weeks. Is starting an LLC as easy as it sounds or are there special loop holes most web-sites don't tell you? Any recommendations on a pretty dry cut web-site which shows you how about getting an LLC (specifically an partnership LLC). Also is a lawyer necessary?
Hi @Shaun Reilly is your LLC run by yourself, or are there multiple persons involved? From highest level, from what I've read, and watched, an LLC is used to protect against personal assets and really in the future for potential tax benefits as your business grows with write off's, etc. Do you know if a multi person LLC is the same in complexity or is it very basic? Once done, should all purchases and contract be utilizing the name of the LLC moving forward? I took a look at @Ann Bellamy black diamond events and believe next month there will be a lot of LLC discussion on 8/26 so I want to make a habit of going as often as my current job allows.
Once a multi person LLC is formed, I'm assuming you can define such that any "members" have a 50/50 split in any assets that show up under the accounts of the business. If I put 2 dollars in the account that is owned by the LLC 1 dollar belongs to 1 member the other to the other.
Sorry for the simplistic examples but really want to understand LLC creation, in's and out's with regards to multi person as best I can without jumping into anything. Another newbie question : )
Thanks again for all your help!
I am not an attorney, but my attorney has told me that a multiple person LLC is probably too much trouble. Great for a single person with a lot of free and clear assets that you want to keep safe or safer from highly leveraged assets inside the LLC.
If you don't have that need for separated assets, a simple joint venture document should suffice between two partners. The document should define how everything is divided. No costs except to write the piece of paper.
Doing a single member LLC should be pretty easy since the OA can be fairly crappy since you don't have to worry about someone else messing things up.
Once you add someone else to the mix it should be much more complicated and absolutely everything should be mapped out very carefully and clearly. You can let it slide a little more if you happen to only have one partner that is say your spouse and you feel fairly confident you won't get a divorce (Though THAT clause on what happens if you do should be in there and make sure that isn't ambiguous!).
For a true on business partner I would sit down and really talk about EVERY aspect of the business and then also use an attorney to draft a proper OA and to get them to tell you the tons of stuff you probably forgot when talking about "everything" with your partner. Probably not worth the effort to do this if you are doing one off deals, only if you plan on having a real long term partnership.
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