Research shows that 30 percent of businesses are more likely to succeed when they have more than one founder. Many of these businesses begin as limited liability companies (LLCs) because they are easy and inexpensive to create. But you need to know who owns what. Where do responsibilities fall? What if your cofounder decides they want to leave?

You need to agree on processes. The best way to do so is with an LLC member agreement that covers everything from ownership percentages to what happens if one partner wishes to leave the company. By making these agreements in advance of tough decisions, you’ll be prepared when they arise.

Published on: Mar 6, 2017