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BartEsq
BartEsq, Researcher
Category: Business Law
Satisfied Customers: 1506
Experience:  Juris Doctor
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Hi my name is XXXXX XXXXX I need securities/investment advice.

Customer Question

Hi my name is XXXXX XXXXX I need securities/investment advice. I just opened an LLC in Ohio for the purpose of investing partners' money in stocks and bonds. I am trying to determine if I need to be licensed before investing individual/company money or if I am exempt. I would have less than 15 clients and am curious if this would exempt me from needing dealer/investment adviser licenses. Thank you for your help.
Submitted: 5 years ago.
Category: Business Law
Expert:  BartEsq replied 5 years ago.

bart0358 :

Hello, I'm researching your answer now.

bart0358 :

Under no circumstances are there exceptions to securities investment. Under the circumstances you suggest you will have to obtain a license whether it be a series 7 broker's license or something similar depending on how you operate and how well your LLC is going to be capitalized.

BartEsq and other Business Law Specialists are ready to help you
Customer: replied 5 years ago.
Based on what I am doing, would I be considered a dealer, investment adviser, IA rep, salesperson, or what? I tried looking into this myself but I can't get a clear answer.
Customer: replied 5 years ago.
What about this:

Q: After I have filed articles of incorporation, are there any requirements for a filing with the Ohio Division of Securities?

A: Maybe. Maybe not. Most frequently, newly formed corporations intend to have fewer than 10 shareholders in the first year. If there is no advertising or general solicitation to obtain those shareholders, and they are purchasing for investment and not for subsequent distribution, then you may have an exemption under Section 1707.03(O) of the Ohio Revised Code. Additionally, if there is a broker or dealer involved in the sale, then the commissions and other remunerations may not exceed ten percent (10%). The broker, dealer, or any salesperson who receives any such commission must be licensed in Ohio.

from this link: http://com.ohio.gov/secu/FAQpage.aspx
Expert:  BartEsq replied 5 years ago.

This has nothing to do with you. This is about organizing a company and selling your shares which require registration with specific securities administrative bodies either on the state level or federal level.

You are trying to find sell securities for someone else, not create a public corporation or a private corporation with publicly or privately traded shares.