Where to begin in starting an LLC (and information on running it)

[TheMan001]

Hello!

I have a team of game developers (~25) and am looking to start an official company. I think that an LLC would suit my needs. However, I'm not sure where to begin in forming this in the state of North Carolina. What format would be best--I want to have total control over the company.

Once the LLC was created, I understand I will need to start paying my employees. Where is some information regarding payments and minimum wages? At the moment everyone is working for free--we are all invested in this start-up with really no guaranteed payout. Can everyone keep working for free? Will I have to provide employee benefits?

Also, a few members of my team are minors and live in different states. How can I have them sign on to be part of my company? What about NDA's? I know they have a right to rescind agreements, how can I prevent this? Will I have to follow regulations in accordance to my state or their state? Which one trumps the other if there is a conflict?

Thanks!

 

[Zigner]

Your question(s) is (are) beyond the scope of an internet forum. While you may get some general guidance here, you would be well-served by consulting with a local business-law attorney, and also with business development pros.

 

[quincy]

Hello!

I have a team of game developers (~25) and am looking to start an official company. I think that an LLC would suit my needs. However, I'm not sure where to begin in forming this in the state of North Carolina. What format would be best--I want to have total control over the company.

Once the LLC was created, I understand I will need to start paying my employees. Where is some information regarding payments and minimum wages? At the moment everyone is working for free--we are all invested in this start-up with really no guaranteed payout. Can everyone keep working for free? Will I have to provide employee benefits?

Also, a few members of my team are minors and live in different states. How can I have them sign on to be part of my company? What about NDA's? I know they have a right to rescind agreements, how can I prevent this? Will I have to follow regulations in accordance to my state or their state? Which one trumps the other if there is a conflict?

Thanks!

A lot of questions. That's good. That shows you are starting your business by considering how best to operate, rather than plunging ahead and asking questions after your business runs into problems.

I agree with Zigner that you have enough questions that you would be well-served by sitting down with a professional in your area, to review all of your wants and needs. Following are some links with information that can get you started:

http://www.ncgov.com/business/assistance.aspx

https://www.sba.gov/offices/district/nc/charlotte

http://blnc.gov

Good luck.

 

[TigerD]

You may also be able to find an attorney that is willing to accept a portion or all of his fee in shares of the company.

TD

 

[TheMan001]

New Questions and Thanks

Hey guys,

Thanks for all the answers to my question! I really appreciate it. Sorry I never replied, figured I needed a lawyer more than an online forum. Anyways, when I asked that question, I was planning for ahead--only had an idea. Anyways, that idea has grown, and we're reaching a point where we will need to incorporate.

When I started the business, there were 3 of us. We had a textual agreement (no signatures, text messages) and verbal (though I can't prove that, can prove the textual) that we would all be partners. One of the partners left after not too long (he never did any work towards the company, we removed him from meetings and such, he never objected--think he said he was leaving though I don't know I can find that text). Now, its been a few months. We've picked up a few additional people helping out with the startup.

My partner who did not quit is now claiming more ownership in the company. He wants to have 51% equity, 2 specific members to have 20% each (myself not included), and everyone else to hold 9%. Clearly, this isn't at all fair given the amount of time and effort we have all put into the company. I've made personal sacrifices, as have other employees. I'd also like to add that I've been the only one to inject my personal cash into the company to further it along.

I am just looking for your personal, non-lawyer opinions if I have a case here, if he doesn't cooperate. Based solely on our text-message agreement that there would be a three-way partnership, can I now argue that he is only entitled to 33.33% and I 33.33%, with 33.33% going to whomever we choose? The other partner and I are pretty good friends, but I can't really justify his demands.

I'm trying to be fair here, and do what's best for the company and in fairness of the other guys who have worked to build this startup. I'd really appreciate any advice you have, besides just "ask a lawyer." I'm here first since I don't know if I even have something close to a case. If not, we'll work it out I'm sure.

 

[latigo]

Hey guys,

Thanks for all the answers to my question! I really appreciate it. Sorry I never replied, figured I needed a lawyer more than an online forum. Anyways, when I asked that question, I was planning for ahead--only had an idea. Anyways, that idea has grown, and we're reaching a point where we will need to incorporate.

When I started the business, there were 3 of us. We had a textual agreement (no signatures, text messages) and verbal (though I can't prove that, can prove the textual) that we would all be partners. One of the partners left after not too long (he never did any work towards the company, we removed him from meetings and such, he never objected--think he said he was leaving though I don't know I can find that text). Now, its been a few months. We've picked up a few additional people helping out with the startup.

My partner who did not quit is now claiming more ownership in the company. He wants to have 51% equity, 2 specific members to have 20% each (myself not included), and everyone else to hold 9%. Clearly, this isn't at all fair given the amount of time and effort we have all put into the company. I've made personal sacrifices, as have other employees. I'd also like to add that I've been the only one to inject my personal cash into the company to further it along.

I am just looking for your personal, non-lawyer opinions if I have a case here, if he doesn't cooperate. Based solely on our text-message agreement that there would be a three-way partnership, can I now argue that he is only entitled to 33.33% and I 33.33%, with 33.33% going to whomever we choose? The other partner and I are pretty good friends, but I can't really justify his demands.

I'm trying to be fair here, and do what's best for the company and in fairness of the other guys who have worked to build this startup. I'd really appreciate any advice you have, besides just "ask a lawyer." I'm here first since I don't know if I even have something close to a case. If not, we'll work it out I'm sure.

ZZZZZZZZZZZZZZZZ

Rather than continuing with the sleep inducing minutiae try reading Chapter 57D of the North Carolina General Statutes.

 

[TheMan001]

Thanks, Though Not Really Relevant

ZZZZZZZZZZZZZZZZ

Rather than continuing with the sleep inducing minutiae try reading Chapter 57D of the North Carolina General Statutes.

Alright.... thanks for the link, I actually found a lot of helpful information there, though none of it really seems to pertain to my specific question. I'm wondering if our casual and mutual verbal agreement is strong enough to support my getting 33.33% and the other owner 33.33%. Thanks though!

 

[quincy]

Alright.... thanks for the link, I actually found a lot of helpful information there, though none of it really seems to pertain to my specific question. I'm wondering if our casual and mutual verbal agreement is strong enough to support my getting 33.33% and the other owner 33.33%. Thanks though!

You do not want a casual and/or oral agreement for your business, if you are serious about starting an "official business." You will want written and signed agreements (contracts) that legally bind you and the others in your business to its terms.

You say you have a team of game developers, some of whom are minors, and you have a lot of questions, many of which do not lend themselves well to a forum setting. The recommendation remains for you to sit down with a business professional in your area, for a thorough review of the business status currently and for a discussion of where you would like to take your business in the future. The professional can advise and guide you after this personal review. We cannot do personal reviews on this forum.

Good luck.