“Sweat Equity” Means No Security
There was no such thing as a limited liability company in 1933, 1934 or even 1968. Thus, Congress and the California legislature had no reason to consider whether a membership interest in an LLC constitutes a security when they drafted the Securities Act, the Exchange Act and the Corporate Securities Law. When California enacted the Beverely-Killea Limited Liability Company Act (SB 469), Read more...
