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    4 Replies Latest reply on Sep 30, 2010 9:12 AM by ArcSine

    Partners

    WarrickF Wayfarer
      Hi All,

      I recently started a business with a parther. It's a small business, now registored as an LLC in New York.

      We both view ourselves as 50-50 partners in the business and are wondering what titles to issue ourselves.

      In general I know that people expect to deal with a CEO when signing larger contracts etc. So it seems that it makes sense for one or the other to be "CEO" - the problem then is what title does the other person take.

      I don't want to create a position where I'm seen as having a more important title than my partner.

      I'd love some advice on the topic.

      Thanks
      Warrick
        • Re: Partners
          LUCKIEST Guide
          Partners, Welcome

          Who r u?? Do you have a partnership agreement??.

          Do you know about SCORE. SCORE is FREE
          • Re: Partners
            ArcSine Scout
            Warrick, an LLC's analog to a "partnership agreement" is the "Operating Agreement". It sounds as though your attorney is already in the process of drafting the OA for you.

            Frequently in cases like yours the partners assign themselves titles that correspond to their particular focus within the biz, such as Chief Financial Officer, Chief Operating Officer, and so on. For contract-signing purposes, it's usually sufficient that the signer be anyone at the "C-level".

            In the occasional event that a CEO's signature is mandatory, then just choose one of you to serve that role just for that purpose. As long as you guys are using (e.g.) CFO, COO titles in your day-to-day operations, neither has a reason to feel slighted. (Personally, as long as I'm getting my share of the profits, and my say-so in the biz decisions, you could call me Chief Errand Monkey and I'd be cool with that :-) )

            On the other hand, for contract-signing purposes, LLC chiefs frequently sign as "Managing Member". With both of you signing that way, there's no implied ranking as between the two of you. Just check in with your attorney to verify that both of are indeed named Managing Member in the OA.

            Congrats on your new venture!