Trying to figure out how to spread for upcoming business loan...

[Rob Lutostanski]

Edit: unfortunate title typo... should read HOW TO SPREAD RISK...

I recently started a new LLC with my partner. We both have a similar net worth. In order to secure funding for our project in which we need about 3 million we are looking at bringing on a third partner. Ideally this individual would front the down payment which is 10%. His net worth is roughly 10 to 15 times my partner and I. He has asked for this to be an even 33% ownership split.

He will be involved in the business but nowhere near as much as myself and my partner who will handle the day-to-day and we have put about a year's work into setting this up. The business itself is a physical business on some land so we would have a nice asset once we finish building everything out.

The issue that we're running into is that he is concerned if the business were to fail that the bank would come to him to try to collect any outstanding debts since his net worth is so much higher.

I'm trying to figure out a way to structure this so that if we were to fail the risk of the bank coming after personal assets is evenly spread out amongst all three owners.

Any guidance would be really appreciated.