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Registering Delaware LLC with 7 partners

Asked by: raj  — 13 November, 2011

Respected sir,
I want to register a internet company in Delaware as an LLC. But the problem is we have 6 owners including some equity for our employees and some equity for our investor. For, eg, 5 employee =50% me =25% and investor =25%. SO, can we register an LLC in this way being all partner? PLease let me know the best way to register an LLC in this way.
Thank you

Answered by: admin  — 13 November, 2011

Dear Raj,

Typically you wouldn’t list the members of Delaware LLC on the Articles of Organization filed with the state. This makes it somewhat convenient to file the company first, and then later on describe the ownership though an Operating Agreement.

Since an Operating Agreement is an internal document its not filed with the authorities. However each time you add/remove a member, or change member interest shares you would need to amend the Operating Agreement.

It might be advisable in your case to actually opt for Delaware corporation instead of LLC, since it is usually easier to move corporate shares around, compared to moving member interest. At this point I would advise you to consult a corporate attorney to make sure you choose the right structure for your company.

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