Legal & Compliance
Common questions related to legal and compliance.
Syndicate provides tools to help users maintain compliance, but it is your responsibility to stay compliant with the legal, regulatory, and tax laws for your jurisdiction(s). Syndicate encourages all users to consult with their own legal and tax counsel.
Here are some FAQs that could be applicable, depending on your location. This information is provided for background education only, and should not be relied upon.
Yes. Syndicate can help you create a Delaware LLC (standalone) or Master Series LLC in partnership with doola. Syndicate will be adding other entity types soon, so please check back here often.
To create a Delaware LLC (standalone) or Master Series LLC, we'll need the following information:
  1. 1.
    The name of the entity you want to create. This name should end with "LLC", "L.L.C.", or "Limited Liability Company" and should be available here. (You can reserve it on Delaware's website for $75, which will hold it for 120 days, but this is not required). Any commas or periods you put into your entity name will become part of the official name, so choose wisely!
  2. 2.
    The full name of the member(s) who we should give the entity to once it is formed.
  3. 3.
    The contact address, phone number, and email of a member from #2 above.

How long does it take to create an entity via doola?

If you submit your entity creation information by 12pm Eastern Time (UTC−05:00) on a business day, your entity will be formed the same day. Otherwise, you'll receive it the next business day.
No. We don't store info about your LLC -- doola does -- so you'll see this message even if your LLC is formed.

What documents am I signing within the Syndicate webapp?

Syndicate's app includes operating agreements and a subscription agreement reviewed by Latham & Watkins. You can view the full documents here. The version in our app has certain default values, but these can be customized by downloading a copy and distributing for signature. Please check with your counsel about which documents will be best for you. For more general information, learn about operating agreements and subscription documents here.
Absolutely. Syndicate's investment club tool can be used for your own legal entity and legal documents that have been developed by your legal counsel.
You are absolutely encouraged to bring your own legal documents and make any changes to Syndicate's legal templates to make them fit your circumstances. You should consult with your own legal and tax counsel on this.
You can download or make a copy of the legal example documents that are provided here. Consult with your legal counsel and financial advisors to determine what changes are appropriate for your club's structure.

Can Syndicate create international entities?

Currently, Syndicate only supports the creation of Delaware LLCs (standalone) and Master Series LLCs. Syndicate will be adding other entities in other countries over time, so please check back here often.
Syndicate is a technology infrastructure and tool provider, which means Syndicate does not provide legal, investment, or tax advice. Syndicate encourages all clubs and their members consult with their own legal and tax counsel.

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

If you pool and invest funds before the LLC is approved, your club may form an unincorporated partnership. An unincorporated partnership may yield the following conditions:
  • Your club's members may be subject to unlimited liability for your club's debts and activities.
  • If your club has a dispute, your jurisdiction's default rules on unincorporated partnerships may govern the resolution of the dispute.
  • If your club would like to begin operating as an LLC after an unincorporated partnership has already been formed, then you may have to take the extra step of transferring the assets from being owned by the partnership to being owned by the LLC.
Syndicate recommends that all investment clubs consult with their own tax and legal counsel to determine the best course of action for their particular situation.