Lynn's response was far from trite and useless. In most state's there are other requirements for LLCs other than having a written operating agreement. You often have to pay annual registration fees to the state, in some cases as much as $800/year. LLC's often have different tax reporting requirements at the state level than partnerships. The fact that the club files as a partnership at the federal level is irrelevant to the state.

 

As a newcomer here, it would behoove you to scan the archives a bit. If you had, you would have learned that Lynn is recognized as one of the experts on investment club formation and operation (though she would never claim that honor for herself). Additionally, by your own questions about what procedures you need to follow when new members join your LLC, you reveal that you didn't fully research the requirements before you formed your group.

 

Finally, you state "maybe my team would like to at some point register with the state as an investment as well as an advisor." Since an investment club is neither a registered security nor a registered investment advisor, perhaps you are asking in the wrong forum. If, however, you do decide to register as one or the other (and you can't be both), don't forget to consider your SEC requirements.

 

Ira Smilovitz

 

lynn:

in response to your trite and useless response...
there is absolutely nothing wrong with creating an llc to
wrap around this club..  by default, the llc will file as a
partnership..
the only difference is that i need to have a written
operating agreement...

why don't you seek to understand before you make a fool..
perhaps there was a reason to form an llc..
maybe my team would like to at some point register with the
state as an investment as well as an advisor..

so please lynn..
if you don't have anything productive...  keep it in...  it
is a waste of the club's space..






Lynn Ostrem wrote:
> what happens when others join the club..  I know of at least3 more that will join over the next 3 months...
> do i need to continually be updating the state.. with mylist of members..also do i need to be updating the brokerage of the samethings..
> Surely in your process of doing your due diligence, people recommended that you set up your club as a general partnership.  The point was to simplify things.  Since you've chosen a more expensive, and more difficult route, you need to seek legal advice.  And getting free legal advice here (or anywhere for that matter) is not prudent.
>
>  
> Contact your secretary of state and follow the law.  A corporation will be scrutinized much more so than a simple partnership.
>  
> Lynn Ostrem, VP
> garbagecop@gmail.com
> Crow River Investment Club
> www.bivio.com/crowriver
>