Setting up new investment company
I have a few friends who want to combine the cash and planning to set up a real estate company for investment purpose. is there any legal investment company I can model?
Also, I am brainstorming legal strucuture where all of my friends (5 people) can equal benfit for now until we find a new investor. If so, what would be the best practice in terms of sharing the profit?
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Legal investment company??? So not bernie madhoff? *ba ding chhhh*
Um the typical formation is a Managing LLC with a bunch of other tiny llc u hold your properties in. That if you're an investor and not a flipper. However and acct and or a lawyer will best detail what type of company entitiy you should use because there are perks and problems with each.
THE LLC can designate %'s that eachmember is entitled to and can be changed and edited later on. read up on those.
The best practice in term of sharing the profit is to share it. I think you may have meant the best method to state who gets what % of the profit and that may or may not be an LLC. Again not a lawyer of CPA