Legal Advertising for LLC Investors - Posted by NCPaul

import · February 23, 2002, 9:08am

Posted by NCPaul on February 25, 2002 at 08:08:41:

nt

import · February 23, 2002, 9:08am

Posted by NCPaul on February 23, 2002 at 10:08:50:

Is there a legal way to advertise to the public for investment in an LLC? I have had free advice, the kind that is worth what you pay for especially if it gets you in trouble, and I?m hoping to get better free advice here. Currently I sell off-frame modular housing one at a time to buyers who close a construction loan. (A CYA way to do business.) The LLC I want to organize would be to raise money to develop a subdivision and sell existing homes through use of the local MLS and advertising. (Allowing me to sell 5 or more at one time.) I find the prospect of several smaller investors more appealing than one angel. (This in theory would also allow me to retain more control than having an angel interjecting the ?Executive Producer?s? point of view into the plan.) To raise the funds to accomplish this I will need to do some significant advertising. Is there some sort of SEC or other law or rule that makes this problematic or flat out illegal? (Is an LLC even the best way to go with this?)

Thanks for the help

import · February 25, 2002, 5:21am

Re: Legal Advertising for LLC Investors - Posted by JHyre in Ohio

Posted by JHyre in Ohio on February 25, 2002 at 06:21:01:

This is a question that begs for specialized counsel. Broad advertising will get you in trouble. Privately contacting “accredited” investors ($1 million net worth or $250k annual income, last I looked) is OK by the feds IF the proper exemption is applied for. State laws vary and are often more strict than federal law. For a nice synopsis, go to a law school bookstore and buy the security law “nutshell”- the clerk will know what you are after and they are fairly cheap (< $25).

John Hyre