Legal Question in Investment Law in New York

If I form an investment fund as a limited liability company, do I also need to form a one-person LLC to serve as the management company (and protect me from personal liability)?

Asked on 2/23/11, 6:56 am

1 Answer from Attorneys

Roman Fichman Esq. Law Practice of Roman Fichman Esq.

As a member of a LLC you already enjoy a limited liability status, so one does not 'need' to form another LLC to be protected. There are, however, certain instances where forming a secondary LLC could be beneficial. You did not mention what is the nature of the fund, how many other parties will be involved and the type of investments that the entity will be making. These factors may necessiate the formation of a secondary LLC or a sturture commonly known as series LLC. In addition, great consideration should be given to whether you will be compensated via distributions, salary or both.

Since, as an investor, you are likely risking a substantial amount of money it is highly recommended that you consult with an attorney admitted to practice in New York to fully flesh these issues.

Feel free to contact my office at your earliest convenience.

Roman R. Fichman, Esq. │ @TheLegalist

email: Info (at) TheLegalist (dot) com

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Disclaimer: This posting has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice. You should always consult an attorney admitted to practice in your jurisdiction for specific advice.

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Answered on 2/23/11, 8:06 am

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