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LLC Ownership Questions

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frewr

Junior Member
Hello,

I registered my company as a single-member LLC in Ohio a little over a year ago. The time has come to bring a couple of other co-founders onboard. These co-founders will work for ownership of the company (7.5% and 5% respectively). Can someone outline the steps I need to go through to grant this ownership?

Sorry for the broad question. I am only twenty years old, and although I have experienced success with the company thus far, the legal questions go way over my head.

Thanks in advance.
 


frewr

Junior Member
I didn't have an operating agreement, but I'm working on drafting one now. Is that all that it takes to sign her on? How do I confront the issue of being a single-member llc?
 

LdiJ

Senior Member
You should have had an operating agreement from Day One.
An operating agreement with himself? That really isn't necessary for a single member LLC.

Frewr,

You are going to need the operating agreement now, as well as an agreement outlining membership percentages. In addition, you will no longer be able to file a Schedule C with your tax return, therefore you and the other members will need to decide if you want to be taxed as a partnership, or taxed as an S-Corp (An LLC gets to make that choice).

It would probably be a good idea to get a consult with both an attorney and a tax professional experienced with LLCs.
 

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