Formalizing Business Agreements

Summary

Formalizing agreements is crucial to protect your interests in business ventures. Document roles, responsibilities, compensation, and repayment terms clearly. Consider consulting a business law attorney for drafting agreements or forming a new LLC. Perform due diligence on new ventures and partners before committing.

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I EXTENDED A LOAN TO AN LLC IN FL - A CONVERTIBLE NOTE AND PERSONAL GUARANTEE (PG). HIS PARTNER STOLE THE FUNDS. THE OWNER DID NOT HAVE ANY MONEY NOR INCOME TO SATISFY THE PG. THE LLC IS DEFUNCT. DURING THE LAST * YEARS, WE HAVE STAYED IN CONTACT AS HE ATTEMPTED TO START SEVERAL OTHER BUSINESSES. HE INSISTS THAT HE WILL PAY ME BACK. IN ORDER TO IMPROVE MY CHANCES OF RECOVERY, I HAVE BEEN PROVIDING GUIDANCE AS WELL AS BUSINESS PLANS, PRESENTATION DECKS & PROJECTIONS. NONE OF THE VENTURES WERE SUCCESSFUL. I DID NOT GO AFTER THE PERS GUARANTEE SINCE HE HAD NO ASSETS NOR INCOME. DURING THE LAST * YEARS, WE HAVE BEEN CREATING A BUSINESS PLAN & PRESENTATION MATERIAL & HE HAS RECEIVED INTEREST FROM A FORMER ALL-PRO ATHLETE TO PARTNER UP WITH US. I FEEL THAT WE WILL FINALLY SECURE FUNDING. HE HAS NOT YET FORMED THE NEW LLC NOR HAVE WE TALKED ABOUT ANY COMPENSATION OR EQUITY IN THE COMPANY. I AM NOW AT A POINT THAT I BELIEVE I NEED TO HAVE AN AGREEMENT AS TO WHERE WE STAND ON EVERYTHING.
It sounds like you're at a crucial juncture in your business relationship and it would be wise to formalize your agreement. Here are some things to consider:
- Draft a written agreement outlining your roles, responsibilities, and expectations.
- Determine compensation, equity, and repayment terms.
- Consider a partnership agreement for the new LLC.
Would you like assistance in connecting with a local lawyer who can help draft this agreement?
NO - I WAS EXPECTING MORE THAN JUST A REFERRAL
Hey Tim! It seems like you're dealing with a complex situation that involves both business planning and legal aspects. Here are some general steps you could consider:
- Formalize Agreements: Ensure all terms are documented clearly to protect your interests.
- Legal Advice: Consult a lawyer specializing in business law for drafting agreements or forming the new LLC.
- Due Diligence: Perform due diligence on new ventures and partners before commitment.
If you need more detailed advice, feel free to ask!