Okay -- sorry -- had an appointment so couldn't finish out my train of thought... and I don't want to hijack this thread taking it from "help one guy - to helping someone else".. but some of these principles can be applied to other types of businesses or variations of it to help people get started.
SO --
Let's apply this "LLC" model to building a car (hot rod)... If you are an honest, hard working, do as you say type guy... then if you have a BUSINESS PLAN stating what you are going to do - how you plan to accomplish this - pre-plan for various pit falls etc... A guy building a car could go to 10 people with this plan - and sell shares in the plan for lets just say $4,000 per share. Half shares could be split if the half share purchaser finds someone to take the other half share... NOW you have $40,000 in capital to work with... and you've got to promise a return on the capital... with some known time frame etc.
So you buy the "car" and some of the parts etc with your own money - then CAPITALIZE the construction with the investors money.. upon sale of the completed project - you return the investors capital along with the prearranged 'return' (called interest) PLUS any growth on their capital investment.
For example - you buy a project for 25K - and you have 40K in capital investment - the project cost 75K to finish... you own 51% of the project - and the investors own 49%... if you sell the project for 120K -- then you have to calculate the return promised - and their share of the capital gain.
I don't want to do the math for this - but lets just say they invested 4K - and you promised 7% annual return and the project took one year to complete - so they get back their 4K plus $280 of interest - PLUS the gain on one share which was $1,000. So for their investment of 4K - for one year - they got back $5,280. And you made a gain as well... so you have more to work with for the next project. Now -- all those investors were quite happy with their investment - so are more likely to invest in the next project and so on.
You could use these shares - to buy portions of the project... You might give 2 shares (worth 8K) to the painter who will do the job for a bargain price to start with as an "investor" - so he also has some ownership which will make him do a bit better job since he stands to gain from this.... and maybe Jason takes a share for putting up wheels and tires... and someone else puts up a motor.
The difference in this way of doing the car - is that some cars get built out of "advertising budgets" for companies willing to help with parts... and my way - would be that - plus - investors providing CAPITAL - and suppliers (now investors) trading their skills or parts for a RETURN on investment.
In order to get the work done right - and on time - you might have to "partner" with someone that is willing to provide space and tools/work... for shares...
The key is - to get started - you under promise and over deliver. When you do this a few times - each time you can gather investors easier.. and build on your own capital investment... and build better projects.
This is all a simplified version - I don't want to write a friggin book here... but you get the drift.
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