LLC internal company agreements

Asked over 1 year ago - Los Angeles, CA

If a friend of mine forms an LLC- 100% ownership under friends name. Can an attorney write up an agreement for my friend and I- to basically- allow that even though I am not a member of the LLC- I will provide consulting service to friends company and that I will earn 70% of income from the LLC ? Basically, what it becomes is that I own 70% of the company but I do not want that listed on the LLC, I do not want to be affiliated with any way that I own a percentage except between the agreement from my friend and I. My source of income such as the 70% will be paid by me as a service- of consulting the LLC. This way it would not be public record that I have anything to do with the LLC. #1- I am not going to run the company, I will only provide a service for friend to run company effectively.

Attorney answers (5)

  1. Michael Charles Doland

    Contributor Level 20

    9

    Lawyers agree

    1

    Answered . Nothing prevents the LLC from entering the contract with you or your being compensated with a percentage of something (sales, profits, etc.)

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
  2. Michael Leo Potter

    Pro

    Contributor Level 20

    9

    Lawyers agree

    1

    Answered . This is not complicated. It is a Contract - pure and simple. Have a Business Attorney draft the contract. You can easily find one on Avvo.Com under Find-A-Lawyer. Good Luck!

  3. Matthew P. Blair

    Contributor Level 11

    4

    Lawyers agree

    1

    Answered . I agree with the prior answers. I suggest you consult a local business attorney and have them draft the contract.

    Matthew Blair
    www.beverlyhillsbusinesslawyers.com

  4. Jeff Hoang Pham

    Contributor Level 12

    4

    Lawyers agree

    Answered . Nothing complicated or especially unusual about this sort of arrangement. As Mr. Doland stated, an LLC may enter into agreements with independent contractors and generally structure compensation as the parties see fit.

    An attorney in your area should be able to assist you in reducing the terms to writing. Best of luck.

    The information presented here is general in nature and is not intended, and should not be construed, as legal... more
  5. Jeffrey Ferris Clark

    Contributor Level 6

    1

    Lawyer agrees

    Answered . I agree completely with my colleagues answering your question. I would just add a few things to think about (be concerned with) as you have someone draft your IC agreement: (i) you're going to have no control over what the company does to assure your continued income, except to the extent built into your agreement (e.g., LLC dissolves, with the only member starting a new company); (ii) relatedly, "profits" can be subject to substantial manipulation by the owner; and (iii)
    your status as an "independent contractor" (versus "employee") may be a sensitive issue.

    This response to your question is general in nature, and is not intended (and is not authorized to be received) as... more

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