Your answer was not very helpful, which is why I did not accept it. From the way you phrased the anwer, I suspect that you didn't understand the structure. I will try to clarify and ask my question another way.
Several independent consultants want to gain the benefits of working in a larger group (greater breadth of offerings to customers, cross-marketing opportunities, and to share marketing and administration costs). Each of the consultants is now a sole proprietorship or an LLC. We want to jointly create another company, of which we 1) we all would be owners and 2) under which we all would be the consultants offering services. We have been thinking of this as a consulting consortium, perhaps like a co-op or guild. We do not envision at this time a structure where only some of us would be owners, and the rest contractors. Everyone will be both an owner of the new entity and a consultant providing services to clients under the new entity. Please note, the consulting services are not provided to the new entity. The consulting services are provided to other third parties, marketed under the name of the new entity.
As I tried to explain above, we do not want to combine our revenue streams, but keep those flowing directly to our own companies. Therefore, the new entity under which we would jointly market would only have expenses and no revenues. The new entity would allocate costs back to each of us member (consultants) per the terms of an Operating Agreement. We also would have a board or decision-making committee to approve types of expenditures and annual budget, with maybe one of us acting as a managing partner to act on behalf of the LLC. We would likely hire a full or part-time manager, and perhaps outsource certain services like tax preparation and advertising.
When I asked about pitfalls, I was wondering about tax issues and liability in particular. All of us will want to be able to off-set the costs of the new entity against the revenues that we make independently- is this possible. And what thought do you see around liability with this structure? are there any other ideas?
If this is not in your area of experience, please defer this to another expert. Thanks!