How to Make Myself 51% Owner of an LLC
A limited liability company, or LLC, is one of the easiest ways to incorporate your business, and offers several benefits, including flexible taxation options and limited personal liability for your company's debts. If you enter into an LLC with a business partner, you may wish to have primary control over the company, and in most cases, a simple majority of 51 percent is sufficient to exert such control.
Contribute the majority of the business's startup capital, financial assets or property. When you draw up your operating agreement, itemize the contributions made by each partner and establish a rule that a person's ownership in the company is established by her financial contribution. If you get a new partner or your current partners contribute more money, you may need to increase your contribution to maintain your ownership stake. You'll also need to maintain careful records of the business's assets and each partner's contribution to the business.
Bring a large number of clients or a significant amount of business into the LLC. If your other partners are hesitant to make you the majority owner, they might be more willing to do so if you're contributing the majority of the business's income source. Similarly, if you're highly experienced in the field or have the most education about your business venture, your co-owners might defer to you and allow you to become a majority shareholder.
Draft an operating agreement indicating that you have 51 percent ownership of the company. Most states don't require operating agreements for LLC, but you're permitted to draft and file one when you file your articles of incorporation. This gives you a right to a majority vote regarding decisions made by your company.
Draft your articles of incorporation and file them with your state's secretary of state. These documents should include information about all owners, the business's purpose and location and decision-making authority. Include your operating agreement with your filings. State rules vary slightly regarding LLCs and incorporation, so contact your secretary of state's office of corporations for more information on what specifically you'll need to file to incorporate.
If your LLC is a sole proprietorship, you'll own 100 percent of the LLC. Most states allow single-member LLCs.
While contributing extra money to your LLC can increase your ownership stake, it can also increase your financial liability. If your LLC loses money, you may lose your investment.