Legal · Strategic Partnerships

How to best create an LLC in collaboration with an existing company?

Korsakov

July 1st, 2016

I am developing a new product with the CEO of a company that serves a similar but different market with its current product portfolio. The new product will basically create a new category. This company can use its resources here in the U.S. and in China to actually build the product. 
However, due to my Visa restrictions I cannot be employed by this company. That is why I need to form a LLC. I would like this company to become a partner and not only a supplier (who could  potentially terminate its role at any time). During the recent past I have developed a friendly relationship with the CEO who is open to discuss options with me and who has also recognized benefits for me to become more involved with his company.

Have you been in a similar situation in the past or can you advise me? Thank you!
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William Agush Founder and CEO at Shuttersong Incorporated

July 1st, 2016

Having just been through some complex discussions around organizational structure there are a few things to make sure you are getting counsel on - tax issues loom when creating any structure, how that structure will affect fundraising, local ownership laws etc. This is a significant legal matter that needs expert counsel. China is a minefield - find a lawyer who has done this in that market.

Steven Atneosen Technology Company Growth Operator

July 1st, 2016

I second what William Agush said above. Find a lawyer, because any anecdotal advice from someone who doesn't know how your particular facts affect laws in the applicable jurisdictions cannot be relied upon for a strategy.

Martin Omansky Independent Venture Capital & Private Equity Professional

July 1st, 2016

I have recently advised a similar company to enter into a joint venture with the CEO's company. His firm would own "member interests" in a separate LLC, and you or your company would also own membership interests in the same LLC. I would suggest you engage an American lawyer to file the papers for you. I have recently used Neil McLaughlin, J.D, I found him to be smart, calm, experienced, and reasonably-priced. He can be contacted at nmclaughlin@tcflawdotcom. Sent from my iPhone