QUESTION
I would like to form an LLC in order to serve as the named investor for a private equity investment. The LLC would be one of the limited partners.
Asked on Apr 15th, 2013 on Contracts - Washington
More details to this question:
A compelling investment opportunity is on the horizon, but the minimum required investment is $1 million. Myself and 10 or so other individuals would like to invest in this opportunity, but in lesser amounts than $1 million. The anticipated investment is anticipated to liquidate in 5 to 10 years. Is it possible to form an LLC to allow us to invest, and if so what would be entailed in terms of cost of formation and ongoing administration.
1 ANSWER
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You definitely want to do this with a lawyer to make sure about the investment. An off the internet operating agreement will not be sufficient for you and your co-investors. You could form an LLC to be the passive investor and the (legal, vs. accounting/tax) maintenance costs should not be more than $1,000 per year. Cost of formation will vary according to experience and location of the attorney, but should also be quite modest.
Answered on Apr 15th, 2013 at 5:29 PM