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, ...