Thank you for your input J T. You have raised excellent points. I have been giving some thought to exactly the same issues. I do not have all the answers. I have many suggestions, and would value the input of other SOT members, and prospective participants.
In so far as your first question is concerned, I think the way to structure it would be for a return of investment both in the form of revenue derived from work assignments generated from a preferred status as an LLC member and a distribution of any profit in proportion to his capital contribution. The members are going to expect more than just being added to a data base. Consequently, I like the idea of buying into an existing LLC which already has contracts pending. Possibly members could join in states in which the LLC is already active, and thereby generate work in short order for these members. The prospect of addition capital contribution from future members in other states may serve as an incentive for the LLC's management to approach lenders in those states, and the additional members could be brought on board when there is work to be done. ..just a thought. It may or may not work. Anyone else have some thoughts on the structure?
A member's exit from the LLC would be determined by the operating agreement and the law of the state in which the LLC was formed.
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