TexasInvest
PARKED
Hi all
I posted this in my introduction message but not sure if that is the correct place for it.
I am starting my first *real* business soon, and as I go through the business plan writing and due diligence, have run into some questions that could be show stoppers. Pretty obviously, this is still in beginning stages but figured here was a good place to find some help!
Without going into much detail, based on the business being conducted, the Company will be accumulating small amounts of money from a large amount of individuals that is held for years before being paid out. What I am worried about is the following:
1) Regulations surrounding holding other people's money. I will essentially be acting as a bank and am not sure the regulations surrounding that. Any help on applicable laws would be helpful.
2) Regulations surrounding investing that money. So basically acting as an investment manager.
This will be a slow, steady growth (hopefully eventually grows quickly) so I won't have millions in funds immediately. I have read a number of SEC and other regulations and it seems that $25MM is the number where you have to start seriously reporting to at least your state. If the business hits $25MM, things will have gone very well and I can cross that bridge then with funds in hand to hire the appropriate compliance.
Just looking for huge red flags from a regulatory point of view prior to spending $$$ hiring a securities attorney.
Thanks everyone
I posted this in my introduction message but not sure if that is the correct place for it.
I am starting my first *real* business soon, and as I go through the business plan writing and due diligence, have run into some questions that could be show stoppers. Pretty obviously, this is still in beginning stages but figured here was a good place to find some help!
Without going into much detail, based on the business being conducted, the Company will be accumulating small amounts of money from a large amount of individuals that is held for years before being paid out. What I am worried about is the following:
1) Regulations surrounding holding other people's money. I will essentially be acting as a bank and am not sure the regulations surrounding that. Any help on applicable laws would be helpful.
2) Regulations surrounding investing that money. So basically acting as an investment manager.
This will be a slow, steady growth (hopefully eventually grows quickly) so I won't have millions in funds immediately. I have read a number of SEC and other regulations and it seems that $25MM is the number where you have to start seriously reporting to at least your state. If the business hits $25MM, things will have gone very well and I can cross that bridge then with funds in hand to hire the appropriate compliance.
Just looking for huge red flags from a regulatory point of view prior to spending $$$ hiring a securities attorney.
Thanks everyone
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
