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Partnerships: Equity Partners

There are several ways to “paper up” an agreement with an equity partner. You can:

  • Use a joint venture agreement.
  • Create a limited liability company with operating agreement.
  • File a Form D and create a private placement memorandum.

Let’s look at each one in more depth.

Joint Venture Agreement

This is a basic legal document that specifies each party’s responsibilities in the business arrangement. Let’s say you find an investor with $100,000, and together you decide to purchase a distressed property to fix and flip. The joint venture agreement may state that you are in charge of finding the property, hiring the trades, ...

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