I own a premium domain name and vanity 800 number that businesses would be very interested in controlling in their marketing area. I looked at a leasing scenario, but businesses I spoke with do not like being at the mercy of a leasor because they will be investing a considerable amount of money promoting the leased number and domain as their own within their territory. A Franchise approach is costly to start-up and maintain.
So what if I modified our existing LLC to accommodate a special class of members who...
- owns a piece of the company
- could vote on issues that effect their use of the IP
- pay a monthly fee to the LLC
- could sell their interest to another Member or approved third party who becomes a Member
- would not be entitled to LLC profits
OR Is a trust a better way to go?I understand the issue fiduciary duty Charles mentioned below. How to best accomplish/satisfy this issue is why I mentioned a Trust in my original question. Any ideas are welcomed. What about security Laws... I'm guessing charging members a monthly fee creates an issue(i.e., what happens if they stop paying). Maybe a better way is to set it up as a contribution verse a fee that can be paid over time. but this approach has an end(fulfillment) date and so a fee would eventually have to take it's place to cover expenses to insure fiduciary duty is maintained. What about the condition that these special interest Members are not entitled to any LLC Profits? Does this present a problem? I appreciate any help with any of these questions as I want to be prepared to ask the right questions and choose the right attorney.