b'ill and can no longer manage their investment, they have a right to know so they can act appropriately to manage their investment.Remember, your investors invested in you and are relying on you to sagely invest their hard-earned savings. You had better know what youre investing in and who youre investing with, because if they fail, its your reputation on the line.Regulatory ConsiderationsIt is possible to create a member-managed limited liability company to maketheinvestmentwithouttriggeringcompliancewiththefollowing securities laws. Read Chapter 6 regarding Joint Ventures and Chapter 16 regarding Investment Clubs. Either of these models is only applicable if all members are actively involved in generating their own profitsand none arerelyingonthepromotertochoosetheinvestment,vetit,oversee operations, and report to them.However, if thats not your business model, please read the following section carefully for an outline of the regulatory requirements. First, You Need an Exemption Under The Securities Act of 1933 If youre creating a manager-managed limited liability company, youre creating your own securities offering. This means your offering must qualify for an exemption from registration under The Securities Act of 1933 or an applicableintrastateofferingexemption.Thisgenerallymeansthatyou must have your own disclosure document (PPM), subscription agreement, 136'