How best to assume more control in a LLC?
November 9, 2010 10:02 AM Subscribe
How best to assume more control than the other members of an LLC?
posted by anonymous to work & money (8 answers total)
I have started a member-managed LLC with two other people. We have not yet signed an Operating Agreement, but that is on the horizon as things are starting to come together.
As we have begun working together, it's become clear to me that my skills, knowledge, experience, and capability pertaining to our business outweigh those of my partners.
Not only am I having to do all of the organizational operations to make the business function as a business, such as the finances, but I am finding that I have to teach my partners about both how to do their jobs (i.e. the technical aspects of what we do) and how to develop their responsibilities into the formalized processes that will allow us to expand and grow as a business.
It seems that the scenario would make more sense if I simply did not have them as partners in the LLC and instead just hired them as employees, except that I haven't the capital to do that. It will take some to-be-determined timeframe before the business will start generating enough revenue for anyone to actually get paid and because of the nature of the business it requires virtually no up front expenditure as long as we aren't paying ourselves.
So I feel like making them partners has been a good way to motivate them to be a part of the business without anyone getting paid now, with the expectation that if/when the business becomes successful we will all start getting paid. However, due to the disproportionate experience, I feel like I should have more control over the overall management decisions, and ultimately, when we are successful, get paid more, at least until my partners have made enough improvement and gained the experience necessary to operate a little more independently.
I am looking for advice about how to, first off, approach this with them in a way that doesn't undermine the skills and capabilities that they do bring to the table, but also more importantly, how best to actually go about structuring the LLC in such a way that allows me this higher level of control and authority.
If I haven't included enough information, or you have any questions at all, please do not hesitate to contact me via email at: firstname.lastname@example.org - I would love to discuss the details further, if anyone is interested!