LLC That Isn't A Security

[Stephen De Vita]

I'm curious to know with those who have experience forming LLCs for fundraising. How do you structure the entity so it isn't a security? From my understanding, LLC that has a "manager" who is making decisions on where and how the money is invested is a security. You could make a member-managed LLC, but then who makes the decisions about where the money goes?

[Patrick Roberts]

Quote from @Stephen De Vita:

@Patrick Roberts Ideally, I would like them not to be really doing anything other than just being money investors. They would receive distributions during ownership and percentage at the sale/refi. Reaching out to a Crowdfunding lawyer is a good idea. I will put it on my to do list. I appreciate it.

 Yeah, I recommend speaking with a securities attorney on something like this. You can get into hot water quickly. 

Crowdfunding Lawyers is the name of the firm. It's Richard Robinette and Nate something.