What is the right LLC structure involving investors?

[Mauricio Castro]

Good afternoon!

I am trying to find the options to set up an entity to participate within another entity (LLC) in a construction deal.

An associate of mine is putting together a construction project for single-family homes and I am coming in as a partner/investor. The whole partnership will be set up under an LLC (let's call this Big Boys LLC). As part of me coming in, I've had to raise a minimum amount of capital coming from various smaller investors including myself. I am thinking of setting up my own LLC (let's call this one Little Guys LLC) to house all the investors and capital that I'm bringing in, then having Big Boys LLC take Little Guys LLC as a partner instead of taking just myself with everybody else's capital. Is this a good way to structure the deal from my end or are there better ways to structure this? I am trying to achieve security for my investors and associate them with the project as well.

One thing to note is that Big Boys LLC does not want to take small sums of money nor many investors, hence why I am thinking of grouping us all separately in Little Guys LLC instead of having them join the Big Boys LLC. Also, for what it's worth, this is a profit/loss share project and is based in Texas.