So, me and two other guys from work have been doing some moonlighting on the side together. We are half way through our first job. The first job is for 15K. Initially we were going to start an LLC together as three equal partners, but at our most recent meeting one of the guys wanted to just have it in his name because -- as he told us - if we moved away he could still have the business. Back story: it has always been a dream of his to own his own company, etc (as he has told us). It is so early in our moonlighting phase, that me and the other guy weren't sure what to say.
I am not familiar with the pros and cons of this kind of situation, so any help would be appreciated.
Also, the 15k he wants to split like this:
$3750 for him. $3750 for me. $3750 for the other partner and then $3750 goes into the LLC bank to cover, I guess taxes and what not? So, he would get $3750 as payment for work done and then another for his LLC biz. So, is that like he is getting paid double us ($7500)? Or am I understanding this wrong or something? If he is getting paid double, is it deserved maybe (e.g., like he is taking more risk as an LLC or something, or there are so many taxes on an LLC, that it would drain the account of that money anyway)? I guess we would function as employees / contractors too. Would we still have to pay taxes as employees or would that already be down through the LLC? Again, total newb to the business / legal world, so any help appreciated.
Also, this is just a hypothetical question: if we were to each just split it, say, evenly three ways we would each get $5000. Would me and the other guy -- who would not be a partner in the LLC anyway -- make more money, less money or no difference in money than if we go through his LLC?