I formed an LLC in 2007 for a business I have been working on for quite a few years. Recently, two individuals have come forward as excellent prospects for future business partners.
I am trying to figure out how to bring them into my business without
1) giving away too much control
2) giving away too much ownership too quickly (trial period?)
My initial thought was to start out the first year as just profit-sharing partners, but have me still control the business. This would be somewhat of a trial period to see if they really fit as business partners.
Any ideas how to structure such an operating agreement for my LLC? Do I add the two new individuals as "members" with 0% ownership and then list how and when profits will be distributed in the profit distribution section?
Anything I should be cautious about (tax implications, etc)?
I am trying to figure out how to bring them into my business without
1) giving away too much control
2) giving away too much ownership too quickly (trial period?)
My initial thought was to start out the first year as just profit-sharing partners, but have me still control the business. This would be somewhat of a trial period to see if they really fit as business partners.
Any ideas how to structure such an operating agreement for my LLC? Do I add the two new individuals as "members" with 0% ownership and then list how and when profits will be distributed in the profit distribution section?
Anything I should be cautious about (tax implications, etc)?

