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My friend and I launched a web application. We intend to make it a paid service by the end of the year. He has 1/3 shares and I have 2/3 (per a verbal agreement). We haven't yet established any LCC, Partnership or otherwise yet, but need to do so in order to get a bank account and get some other things setup.

After doing some research I came across a Limited Liability Limited Partnership and it seems like the right idea, but I'm not sure how to document our agreement on % ownership of the business. If we setup an LLLP, how do we document who owns how much of the business?

closed as off-topic by rhymes_with_dorange, feetwet Feb 24 '18 at 17:58

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  • It is possible to setup a LLC and to draft an operating agreement without a lawyer. You can find info like that on sites like nolo.com. But telling you how to document a particular agreement constitutes legal advice, which you can only get from a lawyer. – feetwet Feb 24 '18 at 18:01
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Hire a business lawyer to draw up the documents and the LLLP papers. If your web app is a soon to be paid service, that means you're serious about the business, and you need to be serious about the legalities and liabilities of your business and the relationship between you and your friend.

For an LLLP. you need to decide who are general partners and who are limited partners. And, LLLPs aren’t recognized in all states, so that structure is probably not a good choice. A lawyer will know all of this.

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