I am about to send in the paperwork to form an LLC. How easy is it to go from sole proprietor to a partnership? Do I need to be a partnership anyways if I`m going to have investors?
Here is the number of an attorney in New Jersey. He offers 1/2 hour free consultations and can answer some of your questions:
Daniel A. Pepper, Esq.
908.698.0330
here is his website: www.informationlaw.com
Good Luck
Lisa
I`m a bit confused by your question. Do you mean how hard is it to bring in a second owner once you are an LLC? Or are you considering entering into a partnership instead of forming an LLC?
Here`s the story haha. I wanted to do this with a friend and have him be my business partner. He has really been slacking in research and development for our business. So I`m wondering if I could just be a sole proprietor and when he finally gets more ambition to be a part of this venture I could bring him on as partner.
The other thing too is that I`m going to have investors and I don`t necessarily know if having investors makes the LLC a partnership anyways.
why not just start as an LLC (protect yourself from business liability issues) and then distribute shares / percentage ownership when you bring a partner in? also an LLC with only 2 partners is considered a partnership in essence from my limited knowledge.
if not too much hassle some people completely dissolve and then re establish a new LLC and document the ownership structure accordingly. you can maintain good records to demonstrate the why, when, who, what...
there are so many negatives to a partnership i would go for staying out of one if possible....we have been in 2 , both ending with us still speaking which is rare..
.. there are so many issues, revolving around, time, money, whos boss of what area, getting out, how to value if one wants out, honesty, work ethic.. etc etc.... its really hard...
be sure and make a great exit agreement that you both accept while you are on good terms...
ann www.greenoakantiques.com
Comments
Here is the number of an attorney in New Jersey. He offers 1/2 hour free consultations and can answer some of your questions:
Daniel A. Pepper, Esq.
908.698.0330
here is his website: www.informationlaw.com
Good Luck
Lisa
The other thing too is that I`m going to have investors and I don`t necessarily know if having investors makes the LLC a partnership anyways.
.. there are so many issues, revolving around, time, money, whos boss of what area, getting out, how to value if one wants out, honesty, work ethic.. etc etc.... its really hard...
be sure and make a great exit agreement that you both accept while you are on good terms...
ann www.greenoakantiques.com