0
votes
1answer
47 views

Recommended Business Structure for Group of Part Time App Builders

A few friends and I have started building small apps and WordPress plugins in our spare time, and I'm wondering what would be the best business structure (LLC, S-Corp, etc) as I think it's almost time ...
2
votes
2answers
113 views

Ownership without investment. Help

I started work at a company a few months back. I was brought in to head up a new division in the company. That division is separating as it's own LLC. I won't be investing any money into the new ...
0
votes
1answer
69 views

Being paid in equity. Can my poor credit rating negatively affect the business?

I'm a web developer, and I've been offered (in addition to cash) equity in the new business that will be based largely on the application I'm being hired to build. As someone who has been scraping by ...
1
vote
2answers
632 views

Equity split and keeping control of an early startup LLC in the long term

The CEO of an early stage LLC plans to keep control of the company in the long term. To achieve this, he plans on keeping at least 51% of the equity. The company has 6 founders in total. While it is ...
2
votes
2answers
1k views

Non-diluting equity for founders on an early startup LLC

The CEO of a LLC early startup plans to assign non-dilutable equity to the founders. Each founder will take a small amount of equity, leaving a pool for future employees and investors. IMHO, what ...
3
votes
1answer
163 views

Undisclosed equity: advantages and disadvantages

The CEO of a LLC early startup plans to distribute equity among the founders. Each founder will not know how much equity the other founder has. What are the advantages and the disadvantages of doing ...
4
votes
4answers
147 views

Need to form company now, but want to make ownership / equity distribution decisions later

(background - few startups, business side) This is a situation that I've encountered a few times before. Seems not uncommon among startups. You're kicking around an idea - let's say there are 2-3 ...
2
votes
4answers
1k views

How to take a draw in a multi-member LLC?

My business partner and I are forming an LLC. As I understand, members of an LLC are not employees and therefore are not on payroll. Instead they pay themselves by taking a draw from the LLC funds. ...
1
vote
2answers
355 views

How to split up LLC ownership?

My friend and I are planning on forming an LLC around some services we are providing. I am working fulltime on our services and started the initial work 6 months in advance My partner has a fulltime ...
4
votes
5answers
2k views

How do you split a company three ways without repeating decimals?

My co-founders and I have agreed on a completely even split equity of 1/3 each. In our operating agreement,however, we need to put down the percentage ownership stake for each of us, and aren't ...
1
vote
1answer
311 views

Considerations such as vesting for Founder Agreement

I'm planning to file a Delaware LLC for a partnership where I'm the majority owner of our self-funded startup. One key goal for me is to incorporate a vesting option among owners where equity is a ...
1
vote
1answer
109 views

Provide services to S Corp through LLC

I am part of an LLC along with two other partners. One of the partners wants to provide services to a company as a source of additional revenue. I am ok with that but since the compensation for the ...
2
votes
3answers
720 views

Formulas for valuing an LLC for employee ownership plans

We're planning on offering some key early employees equity in our startup, an LLC, in the form of ownership shares. The benefits include: - proportional sharing in distribution of profits - ...
1
vote
3answers
498 views

How many companies or LLCs exist where at least one of the partners did not put up capital to receive equity in the LLC?

How many companies or LLCs exist where at least one of the partners did not put up capital to receive equity in the LLC? For example, in an online business one partner may pay all of the bills while ...
2
votes
6answers
4k views

Can You Be A Partner Without Putting Up Money?

I'm running a LLC that is a spin off of another LLC. I was working for the original LLC for a year when the 2 partners decided to start the spin off LLC. I let the partners know I wanted to be ...