Home: Message List - Need Advice for starting a LLC w/ a partner!

Re: Need Advice for starting a LLC w/ a partner!

tahdah — Mon, 13 Oct 2008 16:43:54 GMT

What if one partner has more dollars invested than the other but the other runs the day to day(more time invested). Who should have more of a say?

Re: Need Advice for starting a LLC w/ a partner!

AllProFitness — Sat, 20 Sep 2008 14:06:25 GMT

Thanks for the good input and info. There is just so much information out there and the legal side can be overwhelming. Good luck to you as well!

Re: Need Advice for starting a LLC w/ a partner!

fitgirl_.1 — Sat, 20 Sep 2008 00:01:20 GMT

Our business is based out of S.E. Michigan (about an hour northwest of Detroit)
The best part of a partnership is that we have each other to bounce ideas off of and to also share in the joys and hardships of business together.
I'd always thought that this would be something that I'd do alone, but when the right partner/opportunity came along, I didn't think twice. We have a unique combination of my marketing skills, and showmanships, where she has the ability to handle more of the "behind the scenes" stuff, such as accounting, taxes, book keeping. I think it helps to have a good mixture so that we can pick up on the other's weakness's and accell on the strengths.
Obviously, if you want all the glory, (or failures) to yourself, I certainly wouln't advise taking on a partner.
I've probably heard more on the negative side of having partners, than on the positive, but it's all a personal choice. Final word: Make sure that you consult with accountants and attorneys before deciding on any thing! They'll open your eyes to things that you've never even considered! Good & Bad!
Good luck in your fitness business!

Re: Need Advice for starting a LLC w/ a partner!

fitgirl_.1 — Fri, 19 Sep 2008 21:48:59 GMT

Thanks! I've heard that answer quite a few times also!
Just makes me think about things a little harder.

Re: Need Advice for starting a LLC w/ a partner!

fitgirl_.1 — Fri, 19 Sep 2008 21:47:22 GMT

The business is in Personal Training, as well as a fitness clothing line.
No, we're not looking for something else to invest in! Thanks

Re: Need Advice for starting a LLC w/ a partner!

Lighthouse24 — Fri, 19 Sep 2008 21:31:22 GMT

As an LLC, the only things you'll really be voting on are major changes in company policy and changes in the company's structure, ownership, or management (like going public or adding another member). So I can understand your partner's desire to have an equal voice in those decisions.

There are many operational, tactical, and strategic decisions involved in running a company, and the Chief Executive is ultimately accountable for those. If that's you, you will consider your partner's input, of course -- but from a legal/procedural perspective, you won't vote on those decisions any more than Microsoft stockholders get to vote on the decisions that company makes from day to day. If your partner doesn't agree that you're the best person to make management decisions -- or doesn't trust that you'll consult with him/her, listen, and do what's best for both of you (as owners/members), then you have a larger management role issue that needs to be openly discussed and worked out.

Good luck.

Re: Need Advice for starting a LLC w/ a partner!

AllProFitness — Fri, 19 Sep 2008 20:49:13 GMT

I am also starting a business with a partner and could use the same advice. Because ultimately we will disagree on different issues and what are the pros and cons? Where will you be starting your fitness business. We are based out of San Diego

Re: Need Advice for starting a LLC w/ a partner!

dorkmcki — Fri, 19 Sep 2008 03:23:59 GMT

Don't!!!! Too much of a headache!!!

Re: Need Advice for starting a LLC w/ a partner!

angelssb09 — Fri, 19 Sep 2008 01:40:59 GMT

I would like to know what is your business and are you looking for something unique to invest in.

Re: Need Advice for starting a LLC w/ a partner!

Brew_Master — Thu, 18 Sep 2008 21:49:30 GMT

Have you and your business partner offered up the same dollar amount in investment?

It doesn't sound like it, if you're going to be the majority share holder.

If you have staked more in the company, you should have a higher voting privilage. That is my opinion. As you mentioned this would help prevent an impasse when you and your partner don't agree.

Can your partner find other investors? If he can then you should split ownership accordingly and perhapse you wouldn't have the last say in everything, which might put your partner at ease.