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Adding partner to an LLC - What is best way to do it?

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jinxotx

Junior Member
What is the name of your state (only U.S. law)? Tennessee

I am entering into a 50/50 partnership, and we each have LLC's. The thought is to add me to his LLC. My partner suggested adding me as an officer. My thought is there is no power being an officer. How should I proceed? Thank you.
 


FlyingRon

Senior Member
Being an "officer" doesn't convey any ownership interest. You want to be a member.

You most likely need to change (or create if there isn't one) the operating agreement of the LLC you're going to use for the business to properly reflect the partnership nature of things.
 

adjusterjack

Senior Member
What is the name of your state (only U.S. law)? Tennessee

I am entering into a 50/50 partnership, and we each have LLC's. The thought is to add me to his LLC. My partner suggested adding me as an officer. My thought is there is no power being an officer. How should I proceed? Thank you.
LLCs don't have partners or officers so your dangerous lack of knowledge means you'd be wise to consult an attorney before you do this.
 

LdiJ

Senior Member
What is the name of your state (only U.S. law)? Tennessee

I am entering into a 50/50 partnership, and we each have LLC's. The thought is to add me to his LLC. My partner suggested adding me as an officer. My thought is there is no power being an officer. How should I proceed? Thank you.
Either set up a brand new LLC with an operating agreement stating the respective memberships, or write a new operating agreement for his current LLC setting up the new membership arrangement.

I would vote for a new LLC unless you are buying into his current LLC. If you choose to buy into his current LLC you should examine its current debt load very carefully first.
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