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Forming a 3 person LLC

By jm ·
Hi everyone,

I would like to know what your experiences are with going from a solo computer consultant to a 2 or 3 person LLC. I am about to do just that and need some real world experiences to help guide me mostly in the Operating Agreement. Did an LLC work good for you? Should you have formed an S Corp instead? My plan is to build the company over the next 5 to 7 years and then (hopefully) sell it (for a profit of course!). We (3 computer consultants) will have over 35 years of combined IT experience and are successful at it now but find it hard to grow being solo (not enough time to do it all). We thought combining our time, talents, client lists and splitting certain expenses could really help to build a profitable company. Thanks for any input!

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Get Business Advice

by AJayVee In reply to Forming a 3 person LLC

First of all, get yourself a reputable business attorney and accountant to review the various forms of business organizations. They each have there own financial and legal issues to deal with. Perhaps rather than teaming up with other IT consultants, maybe you should add a sales/marketing person and/or a business manager to the mix. If all three of you are already busy, you still won't have time to sell, market and manage yourselves or your new business entity. I don't see where tying the weights together will help you fly any higher.

Right now I am a one-consultant LLC who uses contractors and subcontractors. My last company was a 25-person C Corp which I changed to an S-Corp for tax purposes. Sure my sales volume is way down from whatit used to be, but my profit (or salary) is way up! So tread lightly and do some research.

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Thanks for the advice

by jm In reply to Get Business Advice

Those are some things I hadn't considered. Thanks for the advice.

David

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