Legal Question in Investment Law in Florida

I have an LLC. It is wholly owned by two partners. My partner would like to raise capital utilizing a format of 15,000 Shares of 12% Cumulative Non-Voting

Redeemable Series A Preferred Stock Offered at $100 per Share. There is no mandatory redemption.

I questioned whether we would be able to issue preferred stock at all considering we were a LLC. Let alone a third suggestion of a convertible debenture into common stock. An LLC doesn't even have common stock correct? Please Help.


Asked on 11/13/09, 3:34 pm

1 Answer from Attorneys
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

This area is very complicated and you really should see a lawyer. Raising capital by selling newly issued shares to others creates a whole host of issues. Be smart. Sit down with a corporate lawyer now.

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Answered on 11/20/09, 9:29 am


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