Mark Kohler warns against giving LLC ownership to friends or employees as motivation or a show of appreciation. Ownership is a legal decision, not love language. Use employment agreements instead to motivate people while keeping your business structure clean.
I think it goes without saying, but I'll say it anyway. Giving ownership to that friend or that manager or kind of pseudo employee, 'cause you want them to have a feeling of more ownership, we can accomplish that with a better employment agreement than just giving ownership of the LLC. Another big topic, but be careful giving away ownership. Ownership is a legal decision, not a love language. Loving someone, wanting them to be motivated, all those things is not a reason to make them a part owner of your company. So gut check number 3, is anyone on the ownership of your LLC for emotional reasons or maybe a reason you don't even really understand? Let's review it.
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