If i want to create a mobile app with a business partner and split the profits, what legal documents should I be signing with him?
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If i want to create a mobile app with a business partner and split the profits, what legal documents should I be signing with him?
I came up with the idea and he will be coding the app. We have clearly defined roles and responsibilities. Should I incorporate it as an LLC?
Asked on December 4, 2014 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Yes, you do want to structure the business as an LLC (you could instead set it up as a subchapter S corporation, but an LLC is generally easier and more flexible for small businesses). You want the liability protection that comes from an LLC. The formation and operating agreements can delineate respective ownership, management/governance issues (e.g. how and by whom are decisions made), how profits will be split and/or the owners otherwise be paid, what each owner needs to bring to the table (e.g. in terms of investment), etc. Any attorney who handles business formation can help you establish the LLC, structure it, and define all the issues regarding management and money.
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