ContractsCounsel Logo

Legal Questions and Answers

Get free proposals from vetted lawyers in our marketplace.

No upfront payment required. Pay only if you hire.
Home Q&A Forum How is profit shared after LLC formation?



New York

Asked on Oct 27, 2023

How is profit shared after LLC formation?

I am looking to form a LLC with two other partners and we need to understand how profits will be shared between us. We have already agreed on certain terms, such as the amount of capital we will each contribute, but we need help understanding how profits should be distributed in accordance with LLC laws.

1 Attorney answer



New York

Answered 257 days ago

Damien B.

ContractsCounsel verified

Business Lawyer
Licensed in New York
Free Consultation

Hello: I understand you are forming an LLC and want to know how to distribute profits. Generally, members would share profits based on their percent ownership. For example, if you own 50% of the LLC, you get 50% of the profits. Likewise, with three members, it could be 33.33% each for example. However, LLC's are very flexibile and the distribution of profits and percentage is not set in stone. The members can decide how to distribute profits among them, usually set forth in the Operating Agreement.

Use of the ContractsCounsel Q&A Forum does not create an attorney-client relationship between User and any Lawyer User. The Forum is not a substitute for legal advice from a lawyer but is intended to be educational and to help the user determine if legal services are necessary. The Forum, Content, and communications on the Forum do not constitute legal advice.
Meet some lawyers on our platform

Jeremiah C.

108 projects on CC
CC verified
View Profile

Brian S.

16 projects on CC
CC verified
View Profile

Rene H.

37 projects on CC
CC verified
View Profile

Forest H.

239 projects on CC
CC verified
View Profile

Find lawyers and attorneys by city