Hi everybody, I want to start a company to provide crowd investing. Imagine a company provides several buckets for young investors to invest into. They would vary with risks and potential returns. Clients would be able to invest as little as $1k, and whenever the bucket is fully invested (lets say $500k ). The amount may or may not get locked (pretty flexible in that sence). Upon expiration the remaining amount would be distributed across investors. The service might keep a percentage from either the managed capital, positive return or both. From some types of buckets investors might get monthly/quarterly payments. I'm pretty flexible with that. The question is, how to legally form such an entity? Does this need to be a hedge fund? Is there an easy way? Does the process to start such a business get easier with 2012 JOBS act? Would very appreciate some feedback. If there is somebody here from legal field and can provide consultation, that would be great as well! Thanks, Ruben
The first thing you do is you DON'T ask a bunch of people you don't know on an anonymous forum. Do the right thing. If you are really serious about it, go find yourself a good lawyer, accountant and whichever other professional advisors you need.... because you will need them long-term, not just one-off ! And if you can't afford the advisors fees, then stop dreaming and go do something else. You need capital to do what you need to do, and if you are sufficiently capitalised, you can afford decent advisors.
Maybe take a look at this to start with - ‘‘Dodd-Frank Wall Street Reform and Consumer Protection Act’’ https://www.sec.gov/about/laws/wallstreetreform-cpa.pdf-
I think you misunderstood my intentions. I was no trying to get a complete solution here at the forum, but few hints in the right direction so that I can dig further. I already have an accountant that can very well take care of the tax portion of whatever I would be doing. The financial lawyer I had been working before does not know much about that area as well. I don't have other connections as of right now, so was thinking to find one here instead of hiring a complete stranger. In the forum I can at least see the reputation and recent posts of the lawyer/advisor. When I mentioned "consultation" I didn't mean "free", maybe I should have been more clear about that.