Partnership Questions?
I have a couple of outside investors who would like to do a Joint venture with my company in Baltimore. Has anyone had experience with partnerships? How were they structured so both parties benefit? (ie. tax break, financial profit)
Thanks in Advance
Ken
Thank You for all the advice and good responses. To give you more detail I already have my LLC set up to do real-estate investment in my area. The investors I have encountered have been private persons looking to do joint ventures on 1 or 2 deals. Should I set up a seperate LLC from my original company to do 2 investments. Or should i have a joint venture aggreement drafted to outline the goals and legality issues of each deal? DOes anyone have an aggreement that has worked for them regarding Investment rentals between your company and private investor???
Thanks Again
Ken
I've done a lot of P'ship deals for myself and clients, and the only consistency is they're all different.
If I were you, I'd have a meeting with the partners and a good business lawyer who can draft the P'ship agreement to fit the deal and do it the way the partners want.
I agree with John, though I would recomend an LLC instead of a partnership as you gain the same benefits of a partnership along with limited liability.
As I've stated before in this forum Nevada LLCs are the best but your specific needs will govern.
Lastly, both a partnership and LLC should have a comprehensive written agreement that governs contributions, distributions, buying/selling your interests, voting, operations, allocations of gains and losses, taxes, subsitituion of partners/members, etc.
Mantis hits the nail right on the head!