Might search SEC opinions, but if he looks more like an investor and you are selling memberships, you should register with your state and the SEC as a security.

Protection of the investors lie with the SEC, as well as state securities boards; protection of the consumer/homeowner lie with the Consumer Financial Protection Board, implementing the Dood Frank Act as well as the SAFE act.  

If your LLC operates an active trade or business, and payroll taxes (SECA taxes) on the owner or owners are high, you may find that an S corporation election is the best choice.Both organizational forms share the characteristic of "passing-through" their income to the owner(s).

If you take the position that the child is an IC you are implicitly taking the position that they will pay SE tax (and file a return) if the applicable thresholds are met, as there is no such exemption from SECA for a dependent child.

If that were the case, every time my brother wanted to borrow $20 and promised to pay me back $25, I'd have to register with the SEC... :)As

I also agree that the analysis is all about cash flow and cap rate (and also IRR, but not cash-on-cash -- I'll explain in a sec)A complete analysis of a potential income-property investment should include not only its current performance, but also a reasonable projection of its future performance througout the expected holding period.

The SEC had created a "safe harbor" which under rules 504, 505, and 506 spelled out parameters of a private offering, which, if followed, would not be challenged by the SEC as a private offering exempt from registration.

And, not going into the arguments of the past with some on BP, I'm totally in the position of the IRS and SEC as to investing compared to operating.And, there is nothing wrong with being a real estate operator, it carries pretty much the same influence as investor in my opinion. in fact, operators implies a keener sense of operations to me, they are generally well versed in various aspects of dealings where the investor-landlord may not have a clue as to obtaining a zoning change to increase the value of a property.

No Surprise because he learned from John Ulmer who also got hit pretty hard by the SEC. As

My understanding was that if you form an LLC with the partners, you can avoid the SEC, as you are not selling securities or crowd funding, or etc.