Sample agreement docs for LLC or LP type Club
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Sample agreement docs for LLC or LP type Club Most of investment clubs are structured as unregistered partnerships. I would like to put my club as incorporated LLC or LP(limited partners). Where can i find sample agreement or membership agreements suitable specifically for LLC or LP type of investment Clubs? Any particular changes should I make to roles as manager,treasurer, general partner, limited partners when establishing club as LLC or LP? Brokerages needs LLC agreements for opening accounts.. Thanks Hi, Investment clubs are generally set up as general partnerships. LLC's are regulated by your state. You would need to find out what requirements they have from them. Your brokerage could give you requirements for opening either of the different types of accounts. Why do you want to do this? If you are setting up something more involved than a regular investment club, I'd recommend you discuss the specifics of your particular project with a lawyer and possibly an accountant to make sure you set things up correctly. Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Thu, May 15, 2014 at 10:22 AM, Raka maka <rakamaka@inbox.com> wrote: Most of investment clubs are structured as unregistered partnerships. General partnerships can face unlimited liability issues whereas LLC or LP type structures can limit its impact. I was just thinking about what can be foreseeable liability issues occur for a well managed Investment Club (other than gains or losses from trading)? What is the goal of doing this? Why wold someone to be the sole general partner or a limited partner in an investment club? Yes, there are liability issues that would be limited, but those are small compared to the additional risks taken on by the general partner in exchange for the loss of control given up by the limited partner. That defeats the purpose of having a club.
Are you setting up a club, or trying to build a structure where someone is the active participant and others just enjoy the results? Those sturctures are highly regulated. Mark Eckman
On Thu, May 15, 2014 at 10:24 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:
Partners in a general partnership only face unlimited personal liability if members conduct business that is within the scope of the partnership agreement or there is documentation that all partners agreed to something outside of the scope of the original agreement. The sample partnership agreement we recommend you use limits the scope of partnership activities. Click the "Things to Consider" link for Item 4 in this sample partnership agreement for a further discussion of this topic:https://www.bivio.com/site-help/bp/Partnership_Agreement Laurie Frederiksen
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