Forming llc while b/d employed

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Nov 29, 2006 6:40 pm

hi...i am going indy with a b/d in jan...formed an llc and intend to use it when i transition....now i have just heard that if i have an llc i should notify my current b/d ...i plan to resign in the next 45 days.....what r my options....any suggestions??

Nov 29, 2006 7:30 pm

These are your options:


- Tell your current B/D about your LLC, then get fired.


- Hold out from telling your B/D and hope they don't find out for 45 days. If they do find out, get fired & have it possibly show-up on record that you hid an outside business from your B/D.


- If your state allows it, transfer ownership of LLC to someone else until you quit.


- Consult a securities attorney about what you should do. (I prefer this option, myself.)

Nov 30, 2006 6:49 pm

thank u sir...that answers my questions.
i have only formed an llc ...{mere act}....and have not had any business activity or received any compensation. I am gonna put everything else on hold{opening a bank account, U4 etc} till i resign,....i am sure glad i ran into this forum....appreciate u guys again....and next time i probably would speak to a lawyer/cpa before anythin so i dont inadvertently *@$# up...


Nov 30, 2006 6:55 pm

just to follow up guys...the rule the way i understand it says that u do not have to notify ur current b/d as long as u r not actively involved in any business activity, or receiving any compensation. Just the "mere act" of opening a company does not trigger the rule.


Nov 30, 2006 8:29 pm
jeno1000:

just to follow up guys...the rule the way i understand it says that u do not have to notify ur current b/d as long as u r not actively involved in any business activity, or receiving any compensation. Just the "mere act" of opening a company does not trigger the rule.



The link that Bill posted already addresses this fact...with a response directly from the horses mouth.  Good thread gentlemen/women.

Dec 1, 2006 12:01 pm
jeno1000:

and next time i probably would speak to a lawyer/cpa before anythin so i dont inadvertently *@$# up...



Forget next time.  You should start a relationship with a lawyer now.  Somebody who knows the industry.

Have them review your plans so far, so they will be there for you when you need them in the months to come.  Also, they may suggest some adjustments in your plans.

Good luck!