Want to form and LLC that will invest and trade in stocks and possibly later in the forex markets.
Will start off with myself and one investor.
I want to maintain control over all aspects of the business, the investor will be passive. However, profit will be allocated based on percentage of capital contributed.
I presume this is possible and I presume this will require an Operating Agreement.
Would such an Operating Agreement need to be completely written from scratch or will one of the online sites like legal zoom be able to handle this?
Also, if in the future a few more investors want to contribute capital and become members, would the operating agreement need to be revised – or can it be written to permit additional investors to join in the future?
– Austin, Indiana
You are proposing is entirely possible. Pretty much any arrangement you can think of can be accomplished in an LLC, if you draft the operating agreement accordingly.
Then, take that operating agreement to a local attorney who specializes in small business transactional issues, and have him/her review it. Explain to the attorney exactly what you are trying to accomplish with respect to your investors, payouts, etc. (similar to what you described in your question).
Have him/her verify that the operating agreement does that. If changes need to be made, then let the attorney make them.
While it seems like adding an extra step, this process I just described will be FAR FAR cheaper than just going to an attorney and asking her to draft an operating agreement from scratch.