How is an ownership group formed?
I am interested in forming an "ownership group". I see the term all over the place, especially in sports, but can't seem to find any details on how these groups are initially formed. Is it a legal formation, or is it just a group of people pooling their funds together with a verbal commitment.
Thanks so much!
Funding Legal Documents Group Buying
2 Answers
There isn't a legal construct called an "ownership group". It is just a language short form, something journalists say when they mean 'all owners of x '.
You should go see a lawyer and a good tax advisor. Depending on what is being owned, and which percentages each owner has, some constructs can sometimes be much more tax-efficient than others.
Wikipedia has a nice overview of the most common types of business organizations in English law:
- Corporation
- Limited company
- Unlimited company
- Limited liability partnership
- Limited partnership
- Not-for-profit corporation
- Company limited by guarantee
- Partnership
- Sole Proprietorship
...a group of people pooling their funds together...Sounds like the term investment club would get you more information. Here is a wiki article that discusses legal formation.
Of course, there's always a dummy book on the topic as well ;)
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Thanks, but not sure if that would be on the same scale as I was thinking. Suppose an internet start-up, or a sports team, or something else is for sale for $500M, and several folks ...maybe 20 - 30 people get together and form an ownership group ...each commits a certain percentage to the purchase. Wouldn't a sale of this scale be a bit more than an investment club? – Mark 11 years ago
