LP, LLP, LLC etc. - what should we do?

[MNT13]

We are toying with the idea of investing into a friend's company. We're doing this obviously since it would be a "win-win" for everyone. And of our friends, we're the couple with the funds and financing. We would like to do the following:

1. Provide Start-Up Costs
2. Assists w/Marketing
3. Have the Start-Up Costs paid to us within 6 months
4. Earn 20% of all profit

What should we pursue in? LP, LLP or LLC?

[Freelancier]

I would pursue a small business attorney to represent your interests and advise you on the best way to structure the deal to protect your personal assets and the money you invest. There's much more to this situation you need to consider than the legal organization of the resulting company.

[Business Attorney]

You can tailor almost any entity to your needs. While limited partnerships (LPs) and limited liability partnerships (LLPs), have been around for many years, the limited liability company is a more modern form of entity that was introduced in most states only in the last 20 years or so. The LLC offers much more flexibility than other types of entities and enables the owners to tailor the entity to their specific business needs.

The statutory entity is only a blank canvas. As Freelancier says, you need a small business attorney to help you consider all the issues and help prepare the operating agreement, partnership agreement or other governing document that uses the proper statutory framework as a starting point to design an entity that meets your particular needs.