Partners in an LLC


1

I'm about to bring on two partners in my LLC. However both have indicated that the "partnership" would be between my company and each of their incorporated entities.

Is that normal?

What is the advantage to doing it that way?

LLC Partnerships

asked Jan 27 '12 at 09:36
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Chris Lively
443 points

1 Answer


2

So what you are saying is that you have an entity and that you currently have 100% of the equity (ownership). The plan is to grant partial ownership in your venture to these two other companies?

What would be more typical in the corporate world would be to create a new corporation with stock in the new corporation owned by your three companies. This would be a "joint venture" and would operate separately from each of the existing companies.

By giving ownership in your venture to their companies you are entering into a one-sided deal in that their companies can continue to operate autonomously while control in your venture is being diluted and they have access to all your dealings.

answered Jan 27 '12 at 11:51
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Jonny Boats
4,848 points
  • An LLC doesn't have stock. – Kekito 8 years ago
  • Jeff: thank you, you are correct. I edited my answer to use more appropriate words. – Jonny Boats 8 years ago

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LLC Partnerships