LLC...adding partners

[g whiz]

 I have an LLC that my wife and I are 50% owners we have 1 property that is currently owned by it. We just purchased another property with partners ( husband/wife). We wanted to add them to the LLC with 50% ownership of the new property but with 0% of the orignally owned home. Is there any way to do this?

[j1dias]

g whiz - I have no idea if there is a way to do it... Probably yes... as lawyers and accountants can do pretty much they want... :O)

However I am curious to why you would consider doing this... Why don't open a separate LLC for the new venture? LLCs are usually not expensive to open - at least not in my corner of the world. And I believe it would keep your accounting so much easier - assuming that you want to split expenses equitably among all the partners.

Also think about your exit strategy - if this new partnership doesn't work out and you want to dissolve it, it would be much easier to do so if you had a separate LLC for it...

Just my 2 cents... I am sure the experts here will share their perspective...

have a nice evening!

[BLL]

It doesn't work that way. Members own the LLC, not the assets of the LLC. You will need another entity to own that new property.

[g whiz]

g whiz - I have no idea if there is a way to do it... Probably yes... as lawyers and accountants can do pretty much they want... :O)

However I am curious to why you would consider doing this... Why don't open a separate LLC for the new venture? LLCs are usually not expensive to open - at least not in my corner of the world. And I believe it would keep your accounting so much easier - assuming that you want to split expenses equitably among all the partners.

Also think about your exit strategy - if this new partnership doesn't work out and you want to dissolve it, it would be much easier to do so if you had a separate LLC for it...

Just my 2 cents... I am sure the experts here will share their perspective...

have a nice evening!

 So I should start a new LLC as partners with them 50/50? I like this idea because we would split the start up cost. They could also help with the name and feel like they are really part owners. Thanks!

[j1dias]

So I should start a new LLC as partners with them 50/50? I like this idea because we would split the start up cost. They could also help with the name and feel like they are really part owners. Thanks!

So g whiz, now I am really curious about your statement above... What do you mean they will feel like they are really part owners... I thought they were part owners... Reading your post, I would think twice about doing business with you... :O)

Hey - I am just pulling your leg. It sound funny the way you said it... That's all... :O) You are right about it is important that they feel they are owners. By starting a new LLC from scratch they will feel more ownership and probably more accountability than if you just added them to your existing LLC.

Good luck!