[WSBARP] Using LLC's for a Joint Venture

[Jimmy Garg]

If they're not sure how it will work out, just a joint venture agreement with each party having a 30 day notice to terminate the contract.  If it does work out, then M&A and consolidation and everything available to them at that point.

Jimmy Garg, Esq.
Jimmy Garg, PLLC
300 Lenora Street # 1063
Seattle, WA 98121
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Dave Culbertson
Sent: Friday, January 27, 2023 2:18 PM
To: solo-and-small-practice-section at list.wsba.org; creditor-debtor-section at list.wsba.org; wsbapt at lists.wsbarppt.com; wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Using LLC's for a Joint Venture

Hello, Listmates.

Two people are considering starting a service business doing landscaping and light remodeling, kind of on an experimental "see-how-it-goes" basis. Both have done so as sole-proprietorships. One party has already set up an LLC, to try to begin providing more professional face to the world (but hasn't used the LLC in any significant way yet).

The two parties hope to join forces, see if working together works, and if it does they keep going. If it doesn't, they decide to each keep working on their own separate businesses, without too much difficulty in disentangling.

It occurs to me that maybe the best structure is for each to have an LLC, so that if they decide ultimately to go their separate ways, each has a business structure already in place. And then the LLC's could engage in a joint venture, or jointly own a third LLC that could be easily ended if the project doesn't pan out.

Only thing is, I don't know much about joint ventures or "LLC owning an LLC" scenarios.

Any thoughts on this scenario, its benefits and its pitfallls would be welcome.

Thanks!

Best Regards,

Dave Culbertson

The Law Office of Davisson Culbertson
PO 20403
Seattle, WA 98102

Phone: (206) 478-8134
FAX: (866) 867-7796
dculbertson at culbertsonlawoffice.com<mailto:dculbertson at culbertsonlawoffice.com>



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