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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116834
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Ive been offered an equal share in an LLC partnership with

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I've been offered an equal share in an LLC partnership with a couple. I'll be the sole investor of 20K. The couple has no money but they run the business. Is 35% (1/3) a fair share for me, the investor?
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes.

If you are the sole investor, you need to have a percentage that grants you a controlling interest, meaning you have the final say on all decisions made in the LLC, since it is your money. If they are giving you even 1% more interest than either of them have and you have an operating/membership agreement that states you have the controlling interest, then this would be a fair share for you as an investor.

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Customer: replied 3 years ago.

Thank you for your answer. It is helpful. But I also need to know as being the sole investor, is 1/3 of the share a fair share for the investor, or should I negotiate for for 40% or more?

Thank you for your response.

1/3 is fair even for a sole investor considering you said they are going to be doing the work. However, my point was that you should not get 33.333% (which is 1/3), you should get at least 34 or 35% which gives you "controlling interest" meaning you have more rights than the other two.

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