Dallas, TX asked in Business Formation and Business Law for Louisiana

Q: In the forming of an LLC, does an equal capital contribution mean both members get 50% of the shares?

In the forming of an LLC, the OA stated the shares are valued at 1% for $300. One member was supposed to pay $15,300 for 51% and the other member $14,700 for 49%. BUT each submitted $15,000 cashier checks. Is it still 51%\49% or is it 50-50 by default?

1 Lawyer Answer

A: The amount of money one contributes to a business startup does not determine the relative share of ownership by the investors. There can be other factors considered, such as time spent on project, know how, which can weigh into the computation. If you have any questions about fairness at this stage, then best to proceed cautiously.

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