Legal Question in Business Law in Minnesota
I am forming an investment club as a general partnership and have a template from the NATIONAL Association of Investment Clubs (NAIC) to put together the Partnership Agreement. I am trying to figure out if there are any specific STATE of Minnesota laws that I need to take into account while drafting the Partnership Agreement or if the more general template is all I need. Thanks!
1 Answer from Attorneys
The PARTNERSHIP is by far the LEAST advisable business form to enter into, since it allows for JOINT and SEVERAL personal liability, meaning that if all of the other partners die or leave the country ( or file BKY), YOU pay ALL of the liabilities of the Partnership ( not just your percentage).
Although an investment club is a wise way to be in the market, I advise my clients to look first to the LLC form of business entity. Unless ALL of the members of your investment club are accredited investors, you may have additional MN and Federal Securities laws to comply with prior to putting in dollar one.
You should consult with an experienced business or securities attorney before proceeding and subjecting yourself to substantial risk.
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