Partnership VS Stocks

[myfayt]

What would you recommend for a small business start up with a partner? File as a Partnership? or an LLC and issue Stock to your partner?

[DerekS]

LLCs don't issue stock. Just spell out the details in your operating agreement.

[myfayt]

Is there any other way of doing a partnership without registering the business in Partnership status?

I want to run as an LLC, but also want a partner. How can I work around this? Or should I file as a S-Corp to issue stock?

[DerekS]

Create an LLC with yourself and your partner as members. Spell out the specific details of the partnership in the operating agreement. That should cover your bases.

[myfayt]

I understand that, but if I were to offer you something, what would I offer you? If I don't issue stock in the company, what else can I give you to call you my partner? If I hired an employee, then I'd have to pay hourly and they may quit anytime, and all. But with a partner they help you pay for stuff, make decisions, and be there when you need them.

[DerekS]

I'd be your partner as defined by the operating agreement. My share of the profits, my ownership interest, and my responsibilities as a member would all be spelled out in the OA.

[myfayt]

Alright so basically I say like, you get 25% of the new member fee, and 10% of the monthly fees. You can sell out your partnership for X number of dollars, etc?