Replying to OP via Al's post to keep this on -discuss:

> AdroitAndroid wrote:
>> The application fee was meant to provide the LLC with startup cash,

If you were proposing a sellers cooperative (e.g., Ocean Spray for 
cranberries), I doubt anyone would be complaining. That's because co-ops 
have specific structures and laws. Moreover, they are not-for-profits 
themselves, meaning they cannot hold onto much in the way of retained 
earnings and profits from sales must flow out to the owners.

>> Note that AdroitAndroid is not an agency.  You won't just be talent
>> farmed out for corporate profit.  You will be AN OWNER who SHARES in
>> the profit.

Usually, when a startup starts up, it recruits a set of founders, who 
then jointly decide things like business structure, ownership 
percentages, rough-cut plans for profit distribution, and the like. In 
your case, it sounds like you're dictating terms to some set of limited 
partners, employees, or contractors.

If you want to create a for-profit LLC, that is fine and is highly 
commendable. I own one myself, and in the past have owned another 
outright and been a founding partner in a third. However, you will get 
less skepticism if you treat this like a normal startup and recruit in 
founders, rather than whatever you consider this second tier of 
participants.

>> The founders of this organization are experienced technologists,
>> entrepreneurs, and management consultants who have strong professional
>> credentials and who can provide professional references for anyone who
>> has doubts about credibility.

IMHO, a virtual corporation of the type you describe should have zero 
non-founders. That's zero, zilch, zippo, bupkes. The founders may have 
varied backgrounds, or they may all do the same thing (e.g., 
programming) and plan to contract out everything else, but they're all 
roughly equals.

I don't get the sense that's what you're doing. It feels like there is a 
caste of founders and a caste of workers, where the caste of founders 
has already been determined.

Again, if you want to create a virtual corporation, that's perfectly 
fine. But you will get less skepticism if you come across like a peer 
humbly recruiting other peers.

-- 
Mark Murphy (a Commons Guy)
http://commonsware.com

Android Training on the Ranch! -- Mar 16-20, 2009
http://www.bignerdranch.com/schedule.shtml

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