Simple LLC formation advice needed

RHHRHH subscriber Posts: 2
Hello,
I am about to start a business and I have two questions:
1-I have two partners, but I will have the larger percentage of the business.  We will have majority vote wins, but I want to have the option to pull rank at any time if necessary.  They both agreed, but how do we put this in writing?  Do we do a seperate Contractual Agreement or do we include it in the Operating Agreement? 
2-We have sufficient startup money, but will need an investor within a year or so to take us to the next level.  Should I leave around 40% (or a different %) or should we divy up our percentages as we procure investor(s)?
Thank a mil!

Comments

  • MNGrillGuyMNGrillGuy subscriber Posts: 2 Member
    1)  Put everything in the Operating Agreement
    2)  Each time you bring in new money you need to sit down with the current owners and agree what % of the company the new money buys.  Of course the new money will also need to agree on this %.
  • armymom2025armymom2025 subscriber Posts: 0
    I would certainly draw up papers and have them notorized and make sure you have a lawyer to make sure everthing is leagally drawn up.
  • pepperlegalpepperlegal subscriber Posts: 2
    I assume from your post that you are forming an LLC, however if you plan on seeking investors in the future, an LLC may not be the best option.  Forming a C- or S-corporation may make offering a percentage ownership of your company easier, and providing you with the ability to restrict the investor from having voting and other operational rights.
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