Awesome Ideas · Cofounder

Existing LLC but new idea(s) and Co-founders!

Saquib Khan Building BIG IDEAS -Hire 20+ resources on Equity - I want to put a dent in the Universe!

March 22nd, 2019

Dear experts,

I have an established LLC to support my DupDup app, and I have given equity to an investor and a Co-founder. Now, I have another idea, and able to convinced two co-founders (technical, and financial). That being said, should I register new LLC or is it safe and wise to keep current LLC , and split equity based on startup ideas.


At the end of the day, you share Company (LLC) equity not ideas - You can have as many startup ideas under sole LLC.


Please advice.


Thanks,

Saquib Khan



Brendon Whateley Founder at Kugadi

April 12th, 2019

If I was your investor, your question would scare me out of investing any more in you!


The top two reasons companies fail are:

  • Lack of Focus.
  • Lack of passion/resilience of the founders.

By changing ideas you are showing both of these. Note, this is different from pivoting with good reason.


You are signaling that you won't stick with your ideas if things get difficult, which they will and also that you prefer shiny objects.


Good luck.

Dane Madsen Organizational and Operational Strategy Consultant

March 22nd, 2019

This depends on: 1) is it complementary to your current business so could be a competitor, 2) will you spend time on it that should be spent on DupDup, and 3) will you use your current LLC resources on the new venture?


If it is any of the 3, then you should keep it in the current LLC. If it is none, then start a new one and keep them separate. However, if it is separate, you need to be totally transparent with your current LLC partners so they do not feel you took a corporate opportunity from them to which they were entitled.

Ema Chuku Product Developer. Founder.

March 22nd, 2019

By the time you finished writing this, chances are you are going to come up with another idea.. So here’s the deal, just because LLC is easier and less-costly to form doesn’t mean you should go about forming LLCs.. Stick to this one and make that new idea a project first.. Until it matures into something it’s just another idea and should not warrant vesting with out-of-line resources..


after maturity, you can talk about either changing the former LLc Operations, filing a new one as a separate entity, or filing as sub-LLC to precious one.

Jay Chavan Cofounder @kaalpanik.com

March 22nd, 2019

Hey Saquib. Its true you want to grow. And people will give u a lot of suggestions here. Don't get stuck in this dilemma. Don't disturb the existing partnership and incorporation. Stick to the expansion plan. You could incorporate a new entity and also without hampering the existing relationship. Yes you will have to face and handle new business compliance, it will be a little overhead but with proper management and responsibility you could overcome this successfully. Its always wise to explore and keep doing something new. Im sure it will be an experience if not success, but still wont be a regret.

Saquib Khan Building BIG IDEAS -Hire 20+ resources on Equity - I want to put a dent in the Universe!

March 22nd, 2019

Thanks you guys! I am inclining towards @Ema`s suggestions. We are struggling with budget, and I cant take a risk to open another LLC , until I have idea validation.


We are trying to find investors (24/7) for my existing DupDup App idea through a co-founder I hired recently in Silicon Valley!


My only concern is raising capital for the new + old idea - That may become tricky! Well.. maybe we shall evaluate once we crossed this bridge!


@Dane Answers to all three questions are "No" - -


Thanks,

Saquib Khan

DINESH ARORA Banking & Digital Evangelist

March 23rd, 2019

Hi Saquib, If u have ur own bandwidth enough to justify both ends in all fairness, do establish a separate LLC I would be further interested to see ur self assessment with ‘Pros / Cons’ analysis. Best,

Saquib Khan Building BIG IDEAS -Hire 20+ resources on Equity - I want to put a dent in the Universe!

April 12th, 2019

@ Brendon Thanks, I am just trying to test the water with another completely different idea, while still spending a good amount of time with my current app.


I am at the stage of exploring ways to make the new idea MVP build in a shoelaces budget if possible. ( Already signed the dotted line with technical resource based off equity).


Have a magical weekend!

Thanks,

SK