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    shayshay's Avatar
    shayshay Posts: 3, Reputation: 1
    New Member
     
    #1

    Aug 3, 2006, 10:48 AM
    Controlling interest
    Good morning,
    I have established a corporation as a parent company. What I would like to do is now establish a real estate investing company up under this corporation as an LLC. I intend on going into business with another person who does carpentry type work. If we have a business fall out, with me owning all shares in the coropration will I maintain controlling of the real estate company or could their be some legal issues because we were in business together.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Aug 3, 2006, 09:21 PM
    From the sounds of it, you would own it all.

    Is this friend of yours going to be an employee? A partner in the real estate company?

    More details please. Clarify his role.
    shayshay's Avatar
    shayshay Posts: 3, Reputation: 1
    New Member
     
    #3

    Aug 4, 2006, 12:45 PM
    I'm not sure. That is where my concern comes in if he is a partner versus an officer in the real estate compnay will that bring on issues if there is a falling out. Or as long as I hold controlling interest in the parent company I can avoid a potential business battle
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,305, Reputation: 7692
    Expert
     
    #4

    Aug 4, 2006, 03:05 PM
    If the investment company is wholely owned by a coporation, then the coporation will be the owner, you can have a contract relationship with this other person, where he can receive a percent of profits in turn for his labor, You can allow him to invest in specific propertyies, but always do it under a specific contract that is specific that he is not a partner but a contractor or employee.

    (personal opinion anyway)
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #5

    Aug 5, 2006, 12:07 PM
    One way to be absolutely sure is to simply get him to sign something saying he is just an employee and not a partner.

    If you cover all of your basis now, and later he tries to fight you, you will win the case.

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