What is the name of your state (only U.S. law)? Maryland
I have a small business, an LLC entity.
My friend wants to put $X to launch a new company with me. In this new company, I do not invest any capital, but I will own 80% of the company. My friend will own 20%. And I'm looking for another partner who can work for no salary in exchange for 20% partnership.
I think it's beneficial to make the new entity a subsidiary of my current LLC. So I guess the steps would be:
1. Register for a new entity with 2 members: my CURRENT LLC, and my friend.
2. The operating agreement of the new entity show my CURRENT LLC as the member with 80%, and my friend as another member with 20% of the profit/loss sharing contribution.
Is that right? If not, what do you suggest?
Thanks much.
I have a small business, an LLC entity.
My friend wants to put $X to launch a new company with me. In this new company, I do not invest any capital, but I will own 80% of the company. My friend will own 20%. And I'm looking for another partner who can work for no salary in exchange for 20% partnership.
I think it's beneficial to make the new entity a subsidiary of my current LLC. So I guess the steps would be:
1. Register for a new entity with 2 members: my CURRENT LLC, and my friend.
2. The operating agreement of the new entity show my CURRENT LLC as the member with 80%, and my friend as another member with 20% of the profit/loss sharing contribution.
Is that right? If not, what do you suggest?
Thanks much.