WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

Sole-owner to partnership?

justinboyd101justinboyd101 subscriber Posts: 11
edited February 2009 in Selecting a Business
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?
· Share on FacebookShare on Twitter Share on Google+

Comments

  • LSnyderLSnyder subscriber Posts: 0

    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
    · Share on FacebookShare on Twitter Share on Google+
  • MattThomasMattThomas subscriber Posts: 2
    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?
    · Share on FacebookShare on Twitter Share on Google+
  • justinboyd101justinboyd101 subscriber Posts: 11
    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.
    · Share on FacebookShare on Twitter Share on Google+
  • WebJunkyWebJunky subscriber Posts: 8 Member
    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.
    · Share on FacebookShare on Twitter Share on Google+
  • justinboyd101justinboyd101 subscriber Posts: 11
    If I did that, would he have to buy those shares to become a partner?
    · Share on FacebookShare on Twitter Share on Google+
  • WebJunkyWebJunky subscriber Posts: 8 Member
    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...
    · Share on FacebookShare on Twitter Share on Google+
  • greenoakgreenoak subscriber Posts: 0
    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   
     
    · Share on FacebookShare on Twitter Share on Google+
Sign In or Register to comment.