Actually, we are in the process of reorganizing our venture to do smth similar. We started with a plain vanilla LLC with several investors but now want to establish a separate entity for the fund and have the orinigal LLC be the owner of the technology and the management company. So should we set up the fund as an LP or an LLC? I'm not a lawyer and we are gonna talk to one most likely today. But I don't see how an LP would be preferable. Maybe I'm missing something though.
This Vegas idea is so impressive... But seriously, looks like paper job is quite simple. BTW I already have EIN and as far as I know no matter how many businesses You have there, is only one EIN assigned to You (at least this is what I got from IRS regarding this matter, would You agree ?). Anyway thank You all for valuable info.
Canyonman, well You`re right, time runs fast. Just a while ago I asked about opening virtual biz account in NJ and I`ve got that look at the banking branch like someone trying to do anything tricky. It`s good to know, that the things have moved up a little.
You need a separate EIN for each business entity (partnership, LLC, corporation, etc.) A single entity with a single EIN can be in multiple businesses.
Yes, you should get an EIN for each entity. Multiple LLC's provide a better independence case in legal protections and matters if you handle them (and yourself) properly. They are the supposed new and improved version of LP's.
Thanks. Once I tried to get another EIN from IRS, and was told that I have to use the one I got already no matter how many businesses I start. But I understand that was DBA, so another world, another story. One more Q: do You guys think, that a lawyer would be necessary ? Did You do your papers on your own, or some legal help was used ?
I used an incorporation firm along with my own understanding of incorporations. I have registered and established several businesses over the years so I am not a novice at this stuff. I would not speak against your interest/need in having an attorney, but I would not be on the bandwagon for running out and getting one to do some things that you can cover on your own. There are many incorporation firms out there that do a great job. I feel that a great portion of what's wrong today is from the over-reliance on the legal profession. Too many people ready and waiting to sue for the maximum and attorney's ready to share, and therein lies the real trouble!
I absolutely agree, just asking. This would be another topic here, while at many times things are obvious, just messed up, giving room for some money to be made. Once You learn how to handle any legal procedure yourself, and compare to the price for such service you get the piece of biting reality.
When I originally asked a local attorney to handle this stuff for me he quoted a price of over $2,500. I accomplished the whole thing myself for around $400 by the time all the smoke had cleared. But more importantly, I had a good understanding of what was needed and how to improve my structure in the future. I say take the time, handle this stuff youself!