Looking for legal advice on creating a partnership with 4 people in a LLC…

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Looking for legal advice on creating a partnership with 4 people in a LLC…

I have set up a LLC for a business that 4 of us are equal partners in. What is the best way of creating stock, how many shares, etc. etc. We will like to sell some shares to raise capital in the future as well.

Asked on May 30, 2009 under Business Law, Georgia

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

An LLC doesn't have stock, ordinarily.  If you want to be able to sell stock at some point, you should probably re-organize as a corporation, to do that.

There are far too many variables, in a small business organization, especially with four equal-share owners, to give you any kind of advice without reviewing the entire situation; so you really need to have an attorney in your area look at this with you.  One place to find a qualified lawyer is our website, http://attorneypages.com

Selling stock in your business to other people is something that can easily land you in serious trouble, if you don't go about it the right way;  you can't sell a piece of your business the way you'd sell your used car.  Working it through properly with your attorney is by far the wisest and ultimately profitable approach.


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