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What should I be aware of while creating an LLC with a foreign partner?

My potential partners are in Taiwan and mainland China. What issues should I be careful of before moving forward with my overseas partnership?
Nina Kaufman answered March 6, 2009
URL: http://www.entrepreneur.com/answer/221875
Whether your partners are local or overseas, there are a number of issues that you will need to address. These include: the capital contribution that each will make to the business, the involvement in decision-making, who will contribute (or continue to own) the intellectual property that the business creates, and what will happen if one of the partners wants to leave the business, namely, how will the business be valued and what's the buyout procedure.

Especially with foreign partners, you want to be very clear on their role before you get started, as you don't have the same ways to ensure accountability that you do when they're in the office next door. You'll also want to ensure that any legal disputes are resolved where you and the business are located -- do not leave this provision out of your LLC operating agreement!

Best to speak to an attorney who deals with business partnerships and foreign investors to make sure your understanding with the partners is clear, and that you have all of the right legal documents in place.

Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.