Determining Ownership Percentages in an LLC

[lloren11]

We have 3 members of our LLC. We need to determine percentage of ownership. To this point we have worked on our product (complex website) for 15 months. Owner 1 came up with the idea and has participated in brainstorming the development. Owner 2 has participated in brainstorming the development and has taken on specific duties and responsibilities in addition to product marketing. Owner 3 has developed the product, hired contractors, made all decisions, will coordinate the developers throughout the development process and has been responsible for all funding of the LLC. How do you fairly determine percentage of ownership?

 

[Michael Wechsler]

There are many factors. Some of it may be how much work is expected over the next several months and assigning a value to the work of each. That's logical and reasonable but there is no magic formula that everyone just accepts. There is also the value that each has brought to the table to be factored in. The three of you need to work it out.