Me an my brother’s are looking to start an LLC as of the new year, and work on acquiring clients while we all will retain our full time jobs as well.

My question is would it be better to enter a multi-member LLC, or for each of us to aquire individual LLCs and one LLC be the main operating entity, and the others recieve payment through a 1099?

I feel the Seperate LLCs (while startup would cost more) benefits of being able diversify our individual entities would be worth it.

Any thoughts on this? Or any other information, suggestions, or tips are appreciated.

  • Engine_Mammoth@alien.topBEnglish
    1·
    1 year ago

    What is the main goal behind the multiple LLCs: to keep separate books for your business vs the whole, or liability protection from the other partner?

    TIP Getting into business with anyone - family, friends, stranger - should not be done so without an Operating Agreement (OA). OAs offer protection to each partner, and outlines what actions the partner or partnership can do in any situation, i.e. do you both have to approve large purchases over $5k, what if a member’s capital account is negative, who is the managing member?

    Edit to add tip.