New Topic
Post Reply
Follow Topic
I am just starting my company....well it has been now one year, and it hasn`t really been anywhere. I need to have close advisors. I would like to create a board of directors in my LLC.
1 - Is it possible within an LLC structure?
2 - If so, how do I motivate them: equity? If so, what is typical? Do I need to put the equity agreement in the operating agreement?
3 - Any other suggestions on how to create board of Directors/close advisors?
4 - How often is it appropritate to have them meet me?
abc1111,
Just establish them as an `Advisory` Board and pay them however you chose to (i.e., flat fee, $ per meeting, % of profit, etc.). As Advisory Board members the individuals can give the same level of contribution for the same consideration, but they take on less liability. They will like that.
It is much easier for you to add and remove Advisory Board members than members of a corporate board. Good for you!
Giving your Advisory Board a membership interest would require amending your Operating Agreement. I would suggest that you avoid doing that until you are absolutly 100% sure that you want these individuals as memebers for the long-term.
I am confused. You are saying it is easy to add/remove them as advisory board members. However, I need to add amendment to my Operating Agreement, which I need to do when I am 100% sure. Is it complicated to add Operating Agreement amandment? Do you think I need a lawyer to do that?
Post Reply
