How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Attorney
Category: Business Law
Satisfied Customers: 55715
Experience:  32 years of experience practicing law and a businessman.
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

Im looking to form an trucking company, my partner and I want

Customer Question

I'm looking to form an trucking company, my partner and I want to have control over the company; however, we need about $150k to get started which means we need to get other people involved. We're in Pennsylvania.

Having done a little research, it looks like we want to form an LP. My partner and I could then own an LLC which would be the general partner. The other people we get involved would be limited partners.

Here are my questions:

- Does this make sense?
- Would the LLC (my partner and I) have 100% of the voting rights?
- Since the limited partners would not be managing the company, would I need to deal with SEC regulations and such to accept their "investments"? Or could I just have an attorney draft the LP docs, take the money, and be done with it?

- What is the easiest way to get other people's money involved with the fewest regulations and headaches?

Submitted: 6 years ago.
Category: Business Law
Expert:  Richard replied 6 years ago.

Good afternoon. 1) I would actually recommend that you form an LLC rather than a LP because it saves you the trouble of having the second entity. You and your partner can be the managers of the LLC. 2) Whether or not you do the LLC or the LP, you are issuing "securities" which are subject to the SEC regulations...but if you sell only to "accredited investors" you will be exempt.



I hope this has given you information that has been helpful to you. I wish you the best of luck!


If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping others or taking a break.


If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.


If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.


Please be aware that the information provided here is not legal advice. Rather it is simply general information. All states have different intricacies in their laws and any information given is simply general information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.



Customer: replied 6 years ago.
I don't think any of the people I want to get involved would be accredited investors. That means net worth > $1,000,000 and/or $100k+ income?

If the people provided money AND were involved in the business, than there would be no issues, correct? What level of involvement would be necessary?
Expert:  Richard replied 6 years ago.
It's going to depend upon their experience and their involvement and if these are people you know or people you don't know. You can have up to a certain number of non-accredited investors without an issue...generally 35.