Equity investors. How to structure?
Newbie here, Just starting out and have general questions about equity investors I particular. But first a tidbit on what my business is all about. Well, future business. I plan to start a real estate investment business to create wealth for my investors and, of course, myself. I have a business plan in the works but is not complete at this time. Right now I am in the process of finding multi-unit properties to create a good base of cash flow for which to operate my business on. I have some prospects but most of my proposed investors are looking for equity.
This brings me to my question. First off, I have not hired an attorney yet to guide me into what type of business structure I will need. But I am leaning toward llc. I do believe that the attorney will answer most of my questions but I wanted to check here first. So, my question to you is this. How do I structure a deal using money from an equity investor? I am not talking the deal between me(buyer) and the seller. I am inquiring about my company and the investor. Do I set up a Limited Partnership with EVERY deal, naming my company as general partner? If so, how do I protect my investor from law suits and the like? How do I separate his/her other assets form this investment? How would this type of arrangement be typically set up?
I may be thinking way off base here. But these are thoughts that I have. I don't want this venture to be like a blind man walking through a maze. I want to be as thorough as possible. I want to instill trust and confidence in my investors and any other relationships I have regarding my business.