I have an opportunity to begin investing for a few friends & family. The portfolio will be big enough to blow out my personal taxes at year-end, so I dont want to do it under the table in my personal brokerage account. Plus, I'm under the impression that the corporate structure will shield me from liabilities.
I dont intend to charge fees or anything of the sort - I'm hoping it can be a part-time thing that doesnt conflict with my FT job.
I've already looked into forming a delaware LLP and advisory corporation, and it seems fairly straightforward. However, I am concerned with all of the paperwork after structuring the entities: mainly the PPM and operating agreement.
Are there any free templates out there to get these documents set up?
Is it advisable that I get a real lawyer to take care of this stuff for me? If so, why?
Anyone have any advice on how to get these documents setup cheaply? Can you recommend a cheap lawyer who can churn these out for me?
Any other anecdotal advice from someone who has done something similar?
On an unrelated note: how would you handle the investment and LLP shares accounting for a simple operation like this? Do it in excel? Is there software out there, like peachtree, that I can likely torrent for free?
(in before the "you'll blow you eye out, kid" comments)
Thanks!
I'm not nearly as well versed on this subject as others on here, but I'll put in my two cents nonetheless.
You will most likely be better off just having your friends and family give you discretion over their brokerage accounts. This is because when you are a registered firm you have constant lawyer costs, disclosures, auditing fees, and back office work. That is not a comprehensive list, but there are a few good threads on here about the costs of starting up a fund so I would look in to those. But, if you are that worried about liability just have a contract drawn up stating you are not liable for any losses incurred after you are given discretion over their brokerage account. It is my belief that forming a fund will prove to be too much of a cost and headache to you if you are not doing this as a full-time gig or taking management fees.
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