Sunday, April 29, 2012 11:24:23 AM
Drew is a capital investor - I am wondering if it's standard procedure for a capital investor to protect themselves from liability by investing through a LLC holding company.
I googled capital investors and the results show most of them as LLC holdings.
I put myself in Drew's shoes - I have capital to invest, and would like to partner up with a company that I think have great potential but I don't want the risk of being held liable to creditors if ever the company fail to do well and falls into great debt so I would invest through an LLC Holding that would give me the same protection as shareholders.
Shady? No, seems to be par for the course for capital investors.
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