If I had an LLC with a capital partner, where would the money go?
First off, I do realize that these types of questions should be discussed with an attorney before any action is taken. I'm definitely going to talk to one, but there are still a few things I'm researching.
Say I found a partner who was willing to form an LLC with me to invest in a property. They would bring all the capital (down payment, closing costs, LLC setup fees, etc.) and I would be doing all the work involved to get the deal done. My understanding is that the capital for the deal would need to be held inside an LLC bank account, otherwise, I would run the risk of violating SEC laws and unintentionally forming an illegal syndication. If someone could clarify on that it would be greatly appreciated.
Additionally, if the capital was held in an LLC account, how should payments be made? I would imagine I would simply confirm every payment I send out with my partner, but that seems to ruin the point of me handling all the work so that they can have a completely hands-off experience. Thanks for the insight!