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Legal Entity Creation
Creating a legal entity for your club can be as quick as 4-5 days.
This overview is provided for informational purposes only, and is not intended to constitute legal, financial, tax, or other advice. You should not act or refrain from acting based on any information in this overview. Syndicate does not endorse or make any representation as to the capabilities of any tax advisor in our network and the provision of contact information is not a recommendation that you hire any such person. Please check with your legal and tax advisors to make the best decisions for your specific circumstances.

Step 0: Determine if you need a legal entity

Whether a legal entity is needed for your investment club is ultimately determined by you, your lawyers, the admin(s), and members of the investment club. Syndicate recommends that all investment clubs consult with their own tax and legal counsel for their particular situation.
If you'd like to form a Delaware LLC as your legal entity, the following information may be interpreted as a general guide, but not legal advice, for doing so.

Step 1: Determine which type of Delaware LLC is the best fit for your circumstances

Delaware Standalone LLC:
Choosing to create a Standalone LLC for an investment club provides a number of important advantages—such as enabling the club to invest in startup equity, helping manage club members' legal and financial liability, supporting tax filings, and empowering clubs with off-chain abilities like opening bank accounts, paying service providers, and more.
Delaware Series LLC:
Choosing to create a Series LLC for an investment club provides a number of important advantages—such as enabling the instant and no cost ($0) creation of legal entities for different investment clubs, enabling an investment club to invest in startup equity, helping manage club members' legal and financial liability, supporting tax filings, and empowering clubs with off-chain abilities like opening bank accounts, paying service providers, and more. That said, these advantages come with a number of risks that a lawyer can help you evaluate.

Step 2: Create an off-chain legal entity

Navigate to your club's dashboard, and on the right side of the screen, click "Create an off-chain legal entity."

Step 3: Proceed through Doola's creation flow

Follow the directions on the Doola Typeform and submit the payment once you're ready.

Step 4: Wait for your LLC formation email

You will receive an email when your LLC has been approved. Depending on congestion in Delaware state offices, your confirmation email may arrive the same day or a couple of days after submitting your form through Doola.

Step 5: Prepare the legal documents through Syndicate

Click "Generate link to invite members."
Next, select whether or not you would like members to sign Operating & Subscription Agreements before they deposit.
If you choose "Yes, use default LLC agreements," please input the necessary information into the template. When you're finished, click "Generate my documents."
You'll then be asked to review and confirm your subscription and operating agreements through the modal.
Once completed, you’ll receive a link to send out to members of your investment club for an invitation to sign and deposit.

Step 6: Send the legal documents to club admins and members

While the operating agreement should only be signed by the club admin, the subscription agreement should be signed by all club members and returned to the club admin.
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Outline
Step 0: Determine if you need a legal entity
Step 1: Determine which type of Delaware LLC is the best fit for your circumstances
Step 2: Create an off-chain legal entity
Step 3: Proceed through Doola's creation flow
Step 4: Wait for your LLC formation email
Step 5: Prepare the legal documents through Syndicate
Step 6: Send the legal documents to club admins and members