LLC for a Networking Group
Question Details: I am starting a networking group and I've decided to wrap it in an LLC, with the idea that it may evolve into a dues-paying organization. I'd like to encourage participants to start their own groups/chapters around the state, but money is tight and I can't afford to pay them. What kind of arrangements can I work out with people who are interested in starting a group at another location? All of my time invested right now is volunteer.
If you grant them the right to use a common tradename that you own and provide signifcant assistance or exert significant contraol, you may become a "franchisor" if you charge more than $500 over the first 6 months of operation. Please review certain articles at my web site www.Kanouse.com at feel free to call me.
Keith J. Kanouse, Esq., Boca Raton, FL
561-451-8090 x 1
You can work out almost any arrangements. You could provide support (information, materials, research, training, cross-marketing, etc.) in exchange for a piece of any dues or payments they receive. You could pay them a salary--but stipulate that they have to work for 6 months for free before being eligible. You could ask everyone to contribute a certain amount of money to fund the group and then use that money to bootstrap it (pay for marketing, collaterol material, etc.)--including potentially paying youself a modest stiped or salary, as long as everying is properly disclosed and accounted for. For profit entities may set up essentially any economic arrangements they like; the important factors are honest disclosure, honest accounting, and correct payment/withholding of taxes.
