Hi Gordon,

I have been involved in a few LLC's both as a passive investor and as a manager. They are very similar to a partnership - you usually file a federal partnership return. They are popular legal entities because of the partnership taxation feature as well as the corporate-like limitation of liability. Many start-ups begin as LLC's and "graduate" as they proceed rounds of financing. Please feel free to email if you have any questions.

Mick Casey

> My attorney is setting up an LLC (Limited
> Liability Company) for me. I'll be the
> General Manager.

> I've been in partnership groups before,
> where the GM basically ran the show, and my
> investment was passive.

> As it was explained to me, the LLC can be
> either member managed, or have a manager.
> Also an LLC can have different types or
> classes of membership.

> If you have experience as a passive investor
> in an LLC and it has worked out, please send
> me an email. ALSO if you have any horror
> stories, those are welcome too.

> I know what I want to do, and how to operate
> it, but I want to "share the risk"
> with those who might want to try something
> like this, to get their feet wet, or who
> have experience and know what a good idea
> can grow into.

> Thanks for any input you might have on the
> formation and operation of an LLC.

> Gordon Alexander