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I have a LLC partnership agreement 50% and was curious how to go about becoming a 50% silent partner How woul

How would I base my partner's salary. As far a contracts getting drawn up, can anyone suggest a suitable firm to do this for a reasonable price. I am also a member of rocket lawyer, maybe i can have a contract done by them. Please advise. Thank you

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Answers (2)
William A. Price
www.growthlaw.com
Business Lawyer
DuPage County, IL

A "silent" partner needs to keep some control, so use an LLC, not a limited partnership. Your "silent" status probably means your "partner" will have authority to make contracts for the business, so be explicit in the deal on what contracts need all member/partners to agree. The net income likely from the business, and the fair value (in returns from other possible investments, for "silent" partners, or in hourly or other compensation possible from other uses of their time, from "Partners" (members, in LLC's) that take on active roles, will help determine a split negotiation all parties think is fair. Would suggest you get a lawyer to help you negotiate and document the final deal. This could be part of your LLC operating agreement, and should deal with initial contributions, control and distributions during operation, buy-sell rights, and pricing on sale for both "partners" to trigger a buy-sell clause and get money from the other.

Dec 30, 2013
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The BAF Group LLC
MD

I don't understand your question.

Apr 9, 2013

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