I have been working on starting up a business and I am now reaching a point where I could use a partner, both in terms of funding and complementary skills. I have approached a colleague about this and he is interested. I am interested in finding out how people usually arrange this partnership/ownership. At this point the business has not even been incorporated yet and I prefer to maintain most of the ownership. I know that at some point we probably need a lawyer, but would like ot get some ideas here first.
I would go with an LLC or S-Corp. Ownership percentage is somewhat irrelevant, but you need at least 50%. For control you either need to have at least 50% ownership and have majority voting rights 2 - 1, or be the only member of the board.
LP, LLC, C-Corp, or S-Corp? If you don t know, please study and determine ASAP. If you want to retain control no matter what, keep it LP.
