Business Law

Ask a Business Lawyer. Get Business Law Questions Answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

Business Law

I have a question about LLC. I'm about to open an LLC with

Customer Question
Hello, I have a question...
Hello, I have a question about LLC. I'm about to open an LLC with four members. The purpose of the LLC is to invest in startup companies. The issue is that each member might want to invest a different percentage in each company. So we might start with 25/25/25/25 split for our first investment, but on the second we might want to do 20/30/25/25.
How this issue can be addressed without opening a new LLC for each new investment?
Thank you
Submitted: 2 years ago.Category: Business Law
Show More
Show Less
Ask Your Own Business Law Question
Answered in 17 minutes by:
12/7/2015
Business Lawyer: Richard, Attorney replied 2 years ago
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 56,022
Experience: 32 years of experience practicing law and a businessman.
Verified

Good evening. My name is ***** ***** I look forward to helping you.

It complicates your Operating Agreement a bit, but what you would need to do is to draft your capital account and allocation of income, loss, and distribution provisions so that basically each investment deal is a separate division within your LLC so that separate capital accounts and allocation provisions are maintained for each deal separately within your one LLC and then consolidated at the end of the year to allocate the totals to the respective members. On the members' ownership percentage interests on the tax return, you simply put "various."

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). I thank you in advance for taking the time to provide me a positive rating!

Ask Your Own Business Law Question
Ask Richard Your Own Question
Richard
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 56,022
56,022 Satisfied Customers
Experience: 32 years of experience practicing law and a businessman.

Richard is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

1,851 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

751 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

646 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

577 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
Can a startup Logistics Company incorporate as an LLC in
Can a startup Logistics Company incorporate as an LLC in Texas when it's members reside in NC and consequently the office also but the business operates out of Texas?The cargo, dispatch, and trailers … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
What skill or tape does the real estate LLC investment need
What skill or tape does the real estate LLC investment need a full prospectus or to be a registered security? I'm doing my first non-residential commercial project and one of the potential investors p… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,698 satisfied customers
I want to create an operating agreement for an existing LLC
I want to create an operating agreement for an existing LLC in Ketchikan, Alaska. This LLC is principally involved in cultivating cannabis and manufacturing cannabis products. This LLC is a legal and … read more
WiseOwl58
WiseOwl58
JD Honors Graduate
3,712 satisfied customers
This question is concerning startup financing. Prior to the
This question is concerning startup financing. Prior to the Seed round, if the startup raises $500k in debt financing, and offers the investor an equity kicker of say 4%, does the startup company need… read more
WiseOwl58
WiseOwl58
JD Honors Graduate
3,712 satisfied customers
I am looking to get private investment capital to secure
I am looking to get private investment capital to secure material from a factory overseas. The terms with the factory are 30% upon order and 70% upon delivery. My question is when I take the money fro… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,698 satisfied customers
Is an LLC operating agreement between 4 members valid if
Is an LLC operating agreement between 4 members valid if only 3 members signed it ? … read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
996 satisfied customers
I am looking to purchase startup that provides a specialized
I am looking to purchase startup that provides a specialized business service (of the data analysis type). They have an office, specialized scanning equipment. We have roughly agreed on their ballpark… read more
WiseOwl58
WiseOwl58
JD Honors Graduate
3,712 satisfied customers
Launching startup and need organized step in what to do.
Launching startup and need organized step in what to do. I've formed my LLC and am just about done with website. Not sure what should do next.… read more
Edward Young
Edward Young
Juris Doctor
154 satisfied customers
I am 51% owner in an LLC. We need a capital call and also
I am 51% owner in an LLC. We need a capital call and also have liabilities, but the 49% owner is refusing to pay his 49% share. What are my options? … read more
Damien Bosco
Damien Bosco
3,388 satisfied customers
Amending the Operating Agreement. We are replacing the sole
Amending the Operating Agreement. We are replacing the sole Manager in our LLC. The LLC has an Operating Agreement (OA) where the manager is indicated by name. Therefore we need to either amend the OA… read more
Michael Gonzalez
Michael Gonzalez
JD
524 satisfied customers
I would like to invest in a private startup and because the
I would like to invest in a private startup and because the investment amount is small, the founder/CEO of the startup does not want to put my name directly on the company registration and cap table, … read more
Landon Lerner
Landon Lerner
Founder of San Diego Office
Doctoral Degree
12 satisfied customers
I would like to invest in a private startup and because the
I would like to invest in a private startup and because the investment amount is small, the founder/CEO of the startup does not want to put my name directly on the company registration and cap table, … read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,698 satisfied customers
I invested in an LLC on a property in TX and have been
I invested in an LLC on a property in TX and have been looking for the managers for a few years now. On my own I found that the property was red tagged, and sold for a loss in 2011. My investment was … read more
DrakeLAW
DrakeLAW
Juris Doctorate
978 satisfied customers
I am covered under an LLC operating agreement with a
I am covered under an LLC operating agreement with a noncompete clause. I have been told in an email (by the managing partner) that I am no longer a member due to a freeze-out merger but I have not se… read more
Ely
Ely
Attorney
Juris Doctor
577 satisfied customers
I am a member of a LLC and the operating agreement says "Any
I am a member of a LLC and the operating agreement says "Any member may inspect any and all records maintained by the LLC". The company lawyer says "Section 1102 of the New York Limited Liability Comp… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,698 satisfied customers
I have a question about investments for a startup, as well
I have a question about investments for a startup, as well as setting up an investment vehicle.… read more
Damien Bosco
Damien Bosco
3,388 satisfied customers
My LLC in does not have an Operating Agreement and 2 of the
My LLC in Virginia does not have an Operating Agreement and 2 of the members would like to voluntarily withdraw leaving myself and 1 other member with the LLC. Do we need an Operating agreement before… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
I am reviewing an operating agreement for a new startup and
I am reviewing an operating agreement for a new startup and I am concerned about the binding arbitration clause. The business concept originated from me for this new startup, and another company I for… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,698 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x