How to give ownership in my startup

by germandar. Posted on Sep 12, 2020    2    7


Hi guys,

I have an LLC from Delaware. I would like to give my two partners a share of profits but not liabilities. How can I do it low cost as I'm a self funded startup and can't afford hundreds of dollars to spend on non essential things like that.

Best regards


Comments

AdamKyleWilson 1

Don’t do it yet.
You or your partners shouldn’t be worried about ownership / profit share until there is something to own. If you’re still pinching pennies on a $1200 legal fee to divide up your equity / profits it’s too early to be worried about profit share legalities. Focus on your product and users. If your partners are so focused on profits they won’t stay along for the ride until you’re making cash then axe them.

  germandar 1

It was my idea to give it to them as an incentive

EdTwoONine 4

Profits or ownership? Because giving someone profits is as simple as giving out bonuses.

JustAnotherFreddy 1

Give out bonus. Try to retain your equity!

  germandar 1

Kinda both. I want them to be a part of startup but don't want to have them liable for anything

EdTwoONine 1

They can have equity without liability. I'm a shareholder in my current company (1-year cliff, 4-year vesting of stock grants) but have no personal liability to the firm.

  germandar 1

Could you please guide me to where to look?