TexasInvest
PARKED
Hi all
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 $$$ hiring a securities attorney.
Thanks all!
I am starting my first *real* business soon, and as I go through the business plan writing and due diligence, have run into some questions that could be show stoppers. Pretty obviously, this is still in beginning stages but figured here was a good place to find some help!
Without going into much detail, based on the business being conducted, the Company will be accumulating small amounts of money from a large amount of individuals that is held for years before being paid out. What I am worried about is the following:
1) Regulations surrounding holding other people's money. I will essentially be acting as a bank and am not sure the regulations surrounding that. Any help on applicable laws would be helpful.
2) Regulations surrounding investing that money. So basically acting as an investment manager.
This will be a slow, steady growth (hopefully eventually grows quickly) so I won't have millions in funds immediately. I have read a number of SEC and other regulations and it seems that $25MM is the number where you have to start seriously reporting to at least your state. If the business hits $25MM, things will have gone very well and I can cross that bridge then with funds in hand to hire the appropriate compliance.
Just looking for huge red flags from a regulatory point of view prior to spending $$$ hiring a securities attorney.
Thanks all!
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