How to list partners on a startup business

Asked 6 months ago - Albany, NY

Looking to take on 1 or more investors to fund a small business idea in new york. Typically how would they each be listed as 10 or 20 percent owners. Is that just listed on my states LLC or corp. forms? Or done by civil contract? Would it be any different if the investor (s) were not a citizen or permanent resident of the US?

Attorney answers (3)

  1. Ronald J Cappuccio

    Pro

    Contributor Level 16

    2

    Lawyers agree

    Answered . Please retain a good tax and business lawyer!!! This is too complicated to"do it yourself". Your attorney will draft an Operating Agreement that will address the rights the investors and protect you.

    Good luck!

    Ron Cappuccio

    If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary... more
  2. Michael Charles Doland

    Contributor Level 20

    1

    Lawyer agrees

    Answered . Don't do this by yourself without a lawyer. Issuing securities is not like filing for a name change. Fraud in the issuance of a security is much more expansive than fraud in a commercial transaction. Any written communication you make will be held against you in the worst possible interpretation. Avvo has so many good business and securities attorneys you can choose from under the Find a Lawyer function located at both the top and bottom of each page.

    PS - yes, there is a huge difference between a domestic and foreign investor in terms of regulation.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
  3. Bryant Keith Martin

    Contributor Level 18

    1

    Lawyer agrees

    Answered . You likely need an offering circular describing your company, business, history and experience. This is a complex legal document with liability for any misstatements or omissions. You must hire an experienced securities lawyer to help you with it.
    Oddly enough, sales to nonresident aliens are exempt, but you still need to consult a securities lawyer about it.

    DISCLAIMER—This answer is for informational purposes only under the AVVO system, its terms and conditions. It is... more

Related Topics

Small business LLCs

An LLC (limited liability company) is a business entity that has elements of both a corporation and a partnership (or sole proprietorship).

Small business partnerships

A business partnership is an arrangement whereby parties enter an agreement to cooperate for their mutual benefit.

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