Englewood, NJ asked in Contracts, Tax Law and Business Law for New Jersey

Q: We have someone who is providing open ended capital. We want to give him 15%equity. What type of agreement would be give

He hasn't asked for equity but we want to give him equity and make him a limited liability investor. How do we do this? He will continue to provide money so there is no specific amount to equate to us giving him 15 percent. We currently have an established partnership for the company already so to give him the equity what type of agreement to we give him?

1 Lawyer Answer
H. Scott Aalsberg
H. Scott Aalsberg
Answered
  • East Brunswick, NJ
  • Licensed in New Jersey

A: This is an agreement your lawyer will have to draft to protect both you and him.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.