Make Connections

Network, Get Answers, Find Members in Your Area, and More!

Forums » Accounting & Financial Management

Financial Model for 3-Member LLC

    • 1 posts
    April 2, 2010 1:54 PM EDT

    I've been working successfully as an independent software consultant for two years and have been seeing an increase in demand for my services.  I have two associates who are interested in taking on intermittent consulting jobs and we are discussing the logistics for partnering.  We've done some research and an LLC seems ideal for our situation.

    My questions are in regards to finances.  Our intention is to operate as independent contractors to the LLC (in which we will be equal shareholders).  The startup costs are minimal, we hope to keep overhead low, each of us will be responsible for our own individual operating expenses.  Our billing is hourly and payout will be based on hourly contribution also.

    1. Non-billable overhead.  Plan is to have an administrative fund with an established minimum balance.  When balance falls below minimum, each of us will contribute some fixed percentage of our billable earnings to the adminfund until the minimum balance is restored.  Or should we each just cut an equal-sized check back to the common fund?   If, let's say, I spend 10 hours managing finances for the LLC I would expect to be paid for my time from the admin fund.  Sound fair?

    2. Commissions/Finders fee.  Given that I have a well-established network, I will probably be finding the majority of new jobs and then employing my partners for the work.  We're discussing commission models.  Specifically, afixed percentage (10%) finder's fee for new job, lower percentage (5%) renewal fee for returning customers.  Are these numbers too low, too high?

    3. Risk/Contribution.  As I mentioned, I am established as a consultant and that's my primary source of income.  My associates both have full time employment and will be "trying out" contract work on the side initially (don't worry we checked for non-compete conflicts) with interest in committing more fully if its a good fit.  How should this impact our Articles of Organization or compensation?  Should this be reflected in our shareholder percentage?  Does shareholder percentage have value in the model I've proposed?

    4. What financial stuff haven't we thought of yet?

    Thanks in advance for your input, apologies if this is too many questions for one post.

    • 31 posts
    January 7, 2014 1:03 PM EST

    Dear Sir/Ma

    I write to introduce our financial services to you. I am a direct mandate to a Financial Institution who is also known as private lender specialized in the Lease and Sales of Bank / Financial Instruments in the form of Bank Guarantees (BG), Standby Letter of Credit (SBLC), Documentary Letter of Credit (DLC), Letter of Credit (LC), Performance Bonds (PB), Medium Term Notes (MTN) et al with funds is purely earned from private and corporate investment portfolios without criminal origin.

    We offer these from a genuine and certifiable finance company as the provider hence we are able finance your signatory projects and help you enhance your business plan. Furthermore, our financial instrument can be used for the purchase of goods from any manufacturer irrespective of their location. It can also serve as collateral with any bank in the world to secure loans for your project or to activate credit line to finance your business plan.

    Our financial instrument can be invested into High Yield Investment Trading Program {HYITP) or Private Placement Program (PPP). All bank instruments are for lease and/or sale from a genuine and reliable source without broker chain / joker broker story or chauffer driven offer while having your required time frame in mind.

    We specialized in Bank Guarantee {BG}, Standby Letter of Credit {SBLC}, Medium Term Notes {MTN}, Confirmable Bank Draft {CBD} as well as other financial instruments issued from AAA Rated bank such as HSBC Bank Hong Kong, HSBC Bank London, Deutsche Bank AG Frankfurt, Barclays Bank , Standard Chartered Bank and others on lease at the lowest available rates depending on the face value of the instrument needed.

    We will be glad to share our working procedures with you upon request to help us proceed towards closing deals effectively.

    Thank You

    Contact : Mr. Mahendra Jain
    Email :
    Skype ID: Jaindra.bglease