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What securities laws impact LLCs?

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What securities laws impact LLCs?

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Many people wonder and worry about the potential securities laws that will affect their new LLC. If you plan on being the sole owner of your LLC and are not thinking of attracting other investors to become owners of your business, then you will not need to worry about securities law. By definition, a security is an investment in a profit-making enterprise that is not run or controlled by the investor. Therefore, if you are planning on having more than one owner (member) in your LLC, then you may have to worry about securities laws. When a person invests in a company and expects to make a profit because of the work of other people, the government will consider the company to be a security. It is worthwhile to keep in mind that the converse is true as well. If you plan on investing money in a company, and expect to receive profits, but also plan on working for and in the company, then the investment is not a security. This second scenario is played out in a lot of start up companies wher

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