united-states, llc, partnership, marylandI’ve agreed to join a start-up as a co-founder and we have formed the partnership agreement (not yet signed). I was wondering if there was any benefit in creating an LLC and making the LLC the partner in the agreement or just using my name and personal address. We are forming a C Corp, if that matters, and have elected several board members.
There are pros and cons to this that are very dependent on your specific situation. You need to contact an attorney licensed in Maryland and talk through all the pros and cons. It also matters not only where you live, but also where the C corp is organized and where the LLC is organized. Again, you need specific legal advice from a Maryland attorney.
There are also possible tax implications. In some instances, an LLC doing nothing other than holding your interest in the C Corp may be treated as a personal holding company, which subjects it to different taxation than an LLC doing other types of business. You should contact an accountant, as well.
Short version: get professional advice from both a lawyer and an accountant before proceeding. Either course of action could have big implications for your finances, so it’s important to get professional help tailored to your specific situation. A corollary to this: this site is fantastic, but do not rely entirely on anything you read here or elsewhere on the internet - hire professionals in your state!
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