Legal & Compliance

Frequent Inquiries relating to Legal & Compliance

Is it possible to establish a legal entity through Homerun?

Certainly! Homerun offers assistance in creating a Delaware LLC (standalone) in partnership with Doola. While currently limited to these entity types, Homerun plans to include additional options in the future.

What are the requirements for establishing a legal entity?

To create a Delaware LLC (standalone), we will require the following information:

1. The desired name for the entity, which should end with "LLC," "L.L.C.," or "Limited Liability Company."

   • Please ensure that the name is available for use (verification can be done here).

   • While not mandatory, you have the option to reserve the name on Delaware's website for $75, allowing a 120-day holding period.

   • Please also take note that any commas or periods included in the entity name will become part of the official name; hence, make your decision wisely!

2. The full name(s) of the member(s) to whom the entity will be assigned once formed.

3. The contact address, phone number, email of a member from the aforementioned point #2.

How long does the entity creation process with Doola typically take?

If you provide all necessary entity creation details by 12 PM Eastern Time (UTC−05:00) on a business day, the entity will be formed on the same day. Otherwise, you can expect to receive it on the following business day.

Does Homerun provide legal, investment, or tax advice?

As a provider of technology infrastructure and management tool, Homerun does not engage in offering legal, investment, or tax advice to its users. It is important to note that Homerun's role is limited to the provision of platform services. Consequently, it is strongly advised that investment clubs and their members seek guidance from their respective legal and tax advisors. Such consultation ensures informed decision-making and adherence to applicable legal and regulatory requirements specific to their circumstances.

Delaware is backed up with LLC filings. Can my Club begin pooling and investing funds before the LLC is formed?

In the context of establishing a Limited Liability Company (LLC) in Delaware, where there may be delays in the processing of LLC filings, questions arise regarding the possibility of investment clubs commencing the pooling and investment of funds before the completion of the LLC formation. In such instances, it is conceivable that the club inadvertently forms an unincorporated partnership. It is crucial to understand the ramifications associated with such a partnership, which may encompass the following considerations:

1. Members of the investment club may become susceptible to unlimited liability concerning the club's debts and activities. This implies that personal assets may be at risk in instances of financial obligations or legal matters.

2. Disputes arising within the club could be subject to the default rules governing unincorporated partnerships within the jurisdiction. Familiarity with these regulations is essential, as they may influence the procedures and outcomes of dispute resolution.

3. Should the investment club subsequently intend to operate as an LLC subsequent to the formation of an unincorporated partnership, additional steps are likely to be required to effect the transfer of asset ownership from the partnership to the LLC.

Considering the potential implications outlined above, Homerun strongly recommends that all investment clubs consult with their individual tax and legal advisors. This prudent step enables them to determine the optimal course of action that aligns with their specific circumstances, ensuring compliance with pertinent regulations while mitigating associated risks.