QUESTION
I have an LLC, and is thinking of adding another owner. Can I just print out a contract and notirize it? Or is there a perticular form to fill out?
Asked on Jun 10th, 2012 on Business Law - Connecticut
More details to this question:
I own an LLC I filled alone. My friend is a veteran and we are going into business together. I will be giving him 20% of the company. I live in connecticut. Will a notirized contract validate his ownership?
2 ANSWERS
Business Transactions Attorney serving Los Angeles, CA
at
Doland & Fraade
Update Your Profile
Notarization isn't the answer to your question. The moment two individuals own a business, the days of informality are over. You should have a company attorney assist you in properly issuing the membership interests. You should make sure your Operating Agreement reflects both of your rights and liabilities. You should also check with a CPA to see if there are any tax implications depending on whether you sell a portion of the membership interest(s) you already own or issue them from the company.
Answered on Jun 12th, 2012 at 5:10 PM
Reviews not shown
1 Award
You are focused on the wrong thing. Instead of focusing on the mechanics of execution, you need to think about the substantive terms of your agreement. What will happen if one of you dies or wants to quit? What will happen if you are dissatisfied with your friend's performance? What will happen if the business requires additional capital and your friend cannot pay up? What will happen if you want to admit a third partner and your friend does not? Will your friend have legal power to bind the LLC to contracts and other obligations without your consent? As you can see, there are many, many issues in any LLC structure. An LLC operating agreement does not have to be notarized, but it matters a great deal what it says. You should review your plans and objectives with an attorney.
Answered on Jun 10th, 2012 at 8:08 PM