Legal Question in Business Law in Colorado

Can I set up an LLC that has two couples (Mr. & Mrs Smith and Mr & Mrs Jones ) listed as owning 50% per couple or do all four people need to be listed individually at 25% ownership?

Asked on 7/30/21, 12:10 pm

1 Answer from Attorneys

Robert Murillo Pivotal Legal Ltd.

What is the reason for forming the LLC with these four people? When you say you want to list, are you talking about listing this in the written operating agreement or are you thinking this would be in the articles of organization? Generally, you should not list members and their percentage in the articles. To your question, the LLC interest is personal property and it should be reflected per person rather than as a couple. There are also other reasons that interests should be provided individually.

After almost 25 years of practice and dealing with dozens of disputes related to business entities, I hope you will act on the following advice. Do not enter a business arrangement with multiple owners without having an attorney provide advice and draft the proper agreements. If things go south you will all pay a large multiple of the cost of paying for an attorney now. You can all pool your funds and split that cost, depending on the circumstances of this deal.

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Answered on 7/30/21, 12:39 pm

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