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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110356
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Me and my wife have started trucking business Corp. I have a

Customer Question

Me and my wife have started trucking business Corp. I have a investor that want to be business partner, He would like to assume all responsibility for Taxes, IFTA, and all credit obligation. He would like to still have or own 60 percent shares of the company and still be responsible for managing the company, he also would like to spilt the revenue 55% our and 45% his after all expense and tax obligation paid. The truck that would be brought for the company will remains our. How do we go by right the contract for business partnership, He wants us to be remove our self as president and vice president so that all credit and liability
Submitted: 6 months ago.
Category: Business Law
Customer: replied 6 months ago.
He would still wants us to own 60% percent of shares of my company, but he wants us to still run and manage the company and be charge of all hiring and business decision of the company, he would like to split the profit 55% to us and 45 percent to him. All the truck and equipment that was brought for the company we want to stay ours, do we need to create a different LLC to protect or equipment. the type of business that already started is Corp not S-Corp
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
So, the first thing here is to create an LLC and to transfer ownership of the truck to the LLC. The LLC would then lease the truck to the Corporation. This way you would retain ownership of the truck and the corporation only gets the use of it. Furthermore, if there are any legal actions against the corporation, the truck is protected from those legal actions.
Next, you can make him 40% owner by selling him 40% of the shares in the corporation. You would also draft a shareholder agreement, which would state that his duty and responsibility and state you would retain your management of the company. You will need a local attorney to draft the agreement and it also needs to contain a provision for buying him out or removing him from the corporation, since this is something that is a common dispute in this type of situation.
Customer: replied 6 months ago.
what about the Corp do I have now, will the LLC be apart of the corp that I have
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your reply.
No, you keep the corp you have now to run the actual trucking business. The LLC is separate owned by you and the LLC would own the truck, which it would lease to the Corp.