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DJ Samson · 01-28-2007, 04:36 PM

Jon,

Not all of our investors have to invest $500. Some are in the lower $100s range and others are in the thousands range. It differs. Obviously, the more money you invest the larger percentage of the firm you own - which results in a higher stake in each venture.

I have no experience with private equity laws nor do I have a lawyer. Our plan was to register a partnership business savings account. Since I'm the one doing the labor work, I would become the primary holder. I would appoint a secondary holder to give insurance to the members that I wasn't going to run off with their investments.

There can be only a maximum of four signatures per transaction. After everyone transferred their amount of funds to the firm's account, I would appoint the two highest investors as the other two account holders - resulting in four total account holders.

Using the forum we would be pitched businesses and business plans - mostly ecommerce. If 75% voted in favor, we would invest in the company - sometimes even buying it out. With the help of a lawyer, we would draw up a contract that stated the company was selling x% of the company to the firm and every 'x' days we would recieve a dividend. There would be alot more into it, but that would be the basic over view.

Is this legal? Any law advice would be appreciated.

entrepreneur86 · 01-28-2007, 04:41 PM

You should consult a lawyer, but it seems that your best bet would be to incorporate, have everyone be a shareholder in the corporation, and then register the bank account to the company.

One thing to take into consideration is how much you trust these other individuals. You will all be able to withdraw everything in the account at any given time, seems a bit risky with new online acquaintances. Why not just have everyone keep their own money, then when an investment opportunity comes around, you can pool your money and invest directly (everyone sends in their own check). This may make things easier for you. You'd all be individuals, basically like a casual PE group, as oppose to a VC firm. You'd cut through a lot of red tape and save lots of money in business registration, taxes and government filings (which must be done for most investments).

Again, you should take my advice with a grain of salt, and consult a lawyer before taking on this project and making any decisions.

DJ Samson · 01-28-2007, 05:45 PM

I like your idea about everyone investing with their own check book yet we're all still united. This will also allow other investors to not be forced into a deal just because 75% of the firm voted in favor of a company. They could just not participate.

I'll have to think this through.

REinvestor · 03-07-2007, 06:34 PM

Hey, people don't under estimate yourselves. I read that someone said that $100 a month would be good, and another said he made $65 a week and was happy. Just because your teenagers, does not mean you can not make REAL money. Im 17 years old, and make about $9,000 a month. I am in high school and I make this money the legal way. I got into Real Estate. Now when most people hear that, they think a teenager can never do real estate. WRONG, Real Estate investing is a huge network which has small jobs for everyone as well as big jobs. I work about 1 - 2 hours a day, 5 days a week. This field does however require a good amount of work. I spent about 5 weeks doing reasearch on all types of real estate investments and investing laws. The first month I started I made $4,000. After getting fully established I now make about $9,000 a month. If you would like any information or any more help, please feel free to email me chanleyinvestments@yahoo.com .

commit · 03-07-2007, 11:48 PM

If I were you I would go and get a part time sales job. Im sure a company would not mind offering you a small base + com that would cover the $100 per month you are looking to get. Apply with companies that interest you. That is what I would do.

At sixteen I started my first business. It took over and I missed my senior year and half of my junior year. I did build a million dollar business at a great cost, alot of hard work, stress, and sweat.

KbProjects · 03-08-2007, 12:18 AM

Quote:

Originally Posted by commit

If I were you I would go and get a part time sales job. Im sure a company would not mind offering you a small base + com that would cover the $100 per month you are looking to get. Apply with companies that interest you. That is what I would do.

At sixteen I started my first business. It took over and I missed my senior year and half of my junior year. I did build a million dollar business at a great cost, alot of hard work, stress, and sweat.

u did? which one?

zoobie · 03-08-2007, 05:27 PM

Do you have any hobbies? Is there a way you can use this hobbies in earning money?

WhoYoDaddy · 03-08-2007, 06:09 PM

I say go for it guys...my coach says he made 100-300 a week selling CANDY AT SCHOOL...but he had family pay to buy the candy, and other students do the selling! O.O

Don't give up!

rob2009 · 03-08-2007, 07:34 PM

Quote:

Originally Posted by WhoYoDaddy

I say go for it guys...my coach says he made 100-300 a week selling CANDY AT SCHOOL...but he had family pay to buy the candy, and other students do the selling! O.O

Don't give up!

Haha...that takes me back to my first "entrepreneur experience"...

I sold Bubblicious Bubble Gum at school (along with others, but that is what I sold mostly). I bought a 4 pack for 1.00 and sold 1 pack for .75. (.50 profit off each one)

I started out selling 5-10 packs/day and started moving up to about 20 packs/day. Then I got into high school, and actually hired a kid in middle school to sell the gum there and he would make a .25 off each one. (and i made .25 for supplying.) So I sold 20-30 packs a day at my high school and he was selling 10-20 packs a day at his middle school. I was making about $16/day profit. Soon it took over me and I was making about 30/day. More than most teens make at part time jobs, and I was just selling gum in the hallways. Until I was told that I had to stop selling and supplying or I would get suspended (And colleges would be able to see that, blah blah blah) so I stopped.

It was a nice little intro to entrepreneurship.

WhoYoDaddy · 03-08-2007, 07:44 PM

Thats crazy!

almost IDENTICAL to his story...his was blow pops though...then grew to like 3 sellers selling kit kat, reeses cups, snickers, airheads etc and just about every thing else...even had administrators buying from him...till he got in trouble...bwahahahaha! He got "raided" lost over $1000 in candy!

rob2009 · 03-08-2007, 07:49 PM

I only sold gum, skittles, starburst, and sometimes airheads.

Too risky with chocolate. Melting was a big problem when I tried it. Or it getting really messed up in my box (crushed or something)

Never was "raided" though. I was even selling to one of my teachers so she allowed me to take the first 2 minutes of class to announce what I had and how much of it I had.. lol