Posted by Russ Sims on December 20, 2004 at 14:47:39:
I think you want an LLC, not a partnership because whether you have a General Partnership or Limited Partnership, either partner has a degree of personal liability. This is what you don’t want…Even a Limited Liability Partnership leaves you personally liable for your actions (though it shields you from the actions of your partners). An LLC is basically a partnership with the shield of personal liability for all members. So you draw up the agreement and each of you maintains a 50% share, or whatever you decide.
Go ahead and do the financing in your name (the bank probably wouldn’t do the financing in the name of your LLC or whatever entity you chose) and then draw up the LLC agreement, or better, have an attorney do it for you. And by all means research LLCs on your own or get the advice of an attorney before you act. Good luck!
need help with partnership - Posted by Tom
Posted by Tom on December 20, 2004 at 12:53:07:
Hoping someone can answer this or at least point me in the right direction of who to ask. Found a small apartment (7-unit) that I’m ready to buy. I’m a finance person by trade, more into analyzing deals and working numbers, etc. than maintaining buildings, etc. So I have a guy that owns a construction company I know to partner with me in running this complex. I will handle the financing, paying bills, and selling the place in the end while he will handle property upkeep. We both will put and equal amount down and split everything 50-50.
I want to move fast on this and have financing lined up for myself and everything (I originally planned on doing it myself). Now I’m wondering what I need to do to make this a partnership rather than just me. At this point I don’t have time to apply for a partnership ID number and re-apply with the bank, etc. What is the best way to handle this as far as letting this other guy buy in for 1/2 interest?