How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
9968427
Type Your Business Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

I need to setup a corp/llc that will allow me to take in 30

Customer Question

I need to setup a corp/llc that will allow me to take in 30 or so members who will be investing $1000 per month. I want them to be able to share in the profits each month but not be able to make any company decisions. I was told in an LLC I can make then members but my partners and I would be managing members who are the only ones who can make decisions
Submitted: 8 years ago.
Category: Business Law
Expert:  Ellen replied 8 years ago.
Thank you for the information. What is your legal question?
Customer: replied 8 years ago.
I need to know what type of entity to set up in order to allow these 30 investors ownership of the company profits, but not the ability to make decisions.

Initially I wanted to do this as an investment group but it appears that the legalities of that are quite expensive and time consuming.
Expert:  Ellen replied 8 years ago.

Hello,


Thank you for your question. I am happy to assist you.


An LLC would give your limited partners the ability to receive income from the partnership and avoid personal liability. As a general partner you could control the day to day activity of the LLC.



You will want to have a partnership agreement carefully spelling out your arrangement.


I hope that the information which I provided was helpful to you.


Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER


Please click ACCEPT so that I can get credit for my work

Bonus and Positive Feedback gratefully accepted!


THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

Customer: replied 8 years ago.
Thank you, XXXXX XXXXX I make myself and any other managing partners an "MMBR" and make all investor partners simply "MBR"?

I believe this will allow us to make all financial decisions and control the company while the "MBR"s simply are paid profits based on the agreement we have them sign?
Expert:  Ellen replied 8 years ago.
If by MMBR you mean "managing member" and "MBR" you mean member, then that is correct.

I hope that this information has helped you.


If I can be of assistance in the future, please ask for FLAandNYLawyer.


Please CLICK ACCEPT so I can receive credit

Bonus and Positive Feedback = job well done.


THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE



Related Business Law Questions