Best type of entity for me

This is a discussion on Best type of entity for me within the Business and Financial Law Questions forums, part of the Legal Questions & Answers Forum category; I am partnering with investors to provide funding to other LLC's who will be buying assets. I am not sure whether I am funding or investing or loaning or investing ...

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  1. #1
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    Best type of entity for me

    I am partnering with investors to provide funding to other LLC's who will be buying assets. I am not sure whether I am funding or investing or loaning or investing but I want to be paid back as the other LLC's bring in their capital. I am not sure what it is I am forming, are we an investment fund? Are we a Hedge Fund? I want avoid being something that is regulated by the SEC. I would like to be an LLC myself as a private investor fund or something of the like.


    As you can see I am somewhat lost as to how or what to form? Your guidance or advice would be appreciated.

    thanks


  2. #2
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  3. #3
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    It sounds like you may be a little unclear about how your entity will be doing business. If you are loaning money with no strings attached, you will probably be regarded as a lender. If you get into how the money is to be used, you are leaning more toward an area in which the SEC may feel they have jurisdiction over your activities. I suggest you get as much detailed information as possible about how you intend to do business and who you will be doing business with and make an appointment with an attorney with securities experience. You do not want to get this wrong.
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