I have an LLC which I am the sole owner. THe LLC is located in Georgia and has a manufacturing site in a town in Ga. I plan a major expansion requiring equity members for cash infusion and the new manufacturing site will be in Florida. Can I allow the equity members to own on equity in the new location?
Not directly. You can allocate company profits so they effectively receive a percentage of only the second location. Likely a better way would be to have a parent company wholly owned by you and set up two subsidiaries. One would be wholly owned by the parent and one would be owned by the parent and the other members in whatever percentages you/they want.
My first thought is that this could be complicated and you should hire an attorney to think through this with you. You or your LLC can be a partial owner of another LLC that owns the new location. You could be violating securities laws if this is not done correctly. Again, talk to an attorney.
This is not legal advice. Seek the advice of a qualified counsel in the relevant practice area. If this is helpful or a best answer, please mark it as such.
It is possible if you have your attorney amend the operating agreement to have two different classes of membership interest in your LLC. The new members could have the class B membership interest which would be the investment into the Florida property. Nevertheless, the smarter move would be to set up a separate LLC for the Florida entity.
If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary for you to try prove this answer is "wrong" or something with which you do not agree. This is a free service for you based on limited facts. Nevertheless, many times you need to consult an attorney with the details to get actual advice specific to your concerns. Do not put too many details in your questions or comments because this makes the information public and could hurt you. Government Regulations contained in IRS Circular 230 regulate written communications about Federal tax matters, including e-mail, between us and our clients. This is another attempt by the government to limit your rights and to extend the control of government over individuals and businesses. Nevertheless, such communications are either opinions or other written communications. This is not an opinion. It is other written communication and was not written to be relied upon, by itself, to avoid any tax penalties. In order to receive assurances of protection from tax penalties from a written communication, you should get an opinion letter. If you would like to discuss an opinion letter relating to any matter, please contact me and I will explain what is involved and what it will cost.
You could restructure your LLC to provide for multiple classes of interests, but it will be cleaner and less complicated to simply place the new manufacturing site in a new LLC. That also would permit you to form the second LLC in Florida where its property is situated. You should consult with an experienced Business Attorney to find the best structure for your situation.
The foregoing discussion does not establish an attorney-client relationship, is qualified by the limited facts presented above, and should not be relied upon as legal advice. To obtain definitive legal advice upon which one can rely necessitates retaining an attorney who is qualified in this particular area of the law.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline