Quote from: wesphily on January 21, 2015, 12:47:22 am

I'm highly interested with incorporating bitshares into my REI LLC. Can a developer please acknowledge that you see the questions below? I don't need answers to them right away, but it would be nice to know that you see them so that you can think about them when possible.

Is it possible to limit the number of shares that an asset allows? I do not want to open up the LLC to random 1$ investors. They will not receive a good roi, and it would be a nightmare for me to try to keep track of a million 1$ investments.

Your company won't be publicly traded anyway. You will be whitelisting keys and so you can make people agree to whatever terms you want. Did you mean to ask, even among people you explicitly whitelist, don't allow them to own less than X number of shares? I don't think that makes sense. Obviously you can limit the number of shares you issue, if that's what you actually meant. Something like 1-5% of companies become $1million dollar companies. Even fewer of those become publicly traded.

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EDIT: Can a feature request be made to allow accounts to input all of that information so that they can be "pre-approved" for investments similar to this? Decentralized protection of data that allows you to purchase shares in centralized companies sounds good in my head.

You'll need to do this info verification outside of our system on your, at least until someone makes a service to make it easier. You'll probably have a lot of manual processing to do anyway.

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Also, whitelisting: does this mean I could whitelist particular account names so that only they could purchase a share? If so then that would be great since I could gather all the "know your customer" (in this case partner) information needed for the LLC.

Yes, that's the point - you can only legally issue shares if you know who the owners are.


Remember that bitshares is JUST a database that keeps track of who has what. We can make ownership transfer restricted in the ways that make the thing you are transferring a legally compliant share of your company, in particular restricting ownership to people you approve. Everything else is still completely up to you.

Thanks for the responses. I hope you all are able to expand usability in the future. I understand it's use now, but it seems too limited to use.

Online centralized exchanges take care of all the partner information for the companies being traded. This is a very valuable service. I hope that bitshares can do that one day as well.

Finally, this may work great for c-corps, but it will not work for small companies. Partnership is different and has different regulations. Small businesses are a big part of commercial. Would be nice to have solutions for them too. Something like 1-5% of companies become $1million dollar companies. Even fewer of those become publicly traded.

I'm highly interested with incorporating bitshares into my REI LLC. Can a developer please acknowledge that you see the questions below? I don't need answers to them right away, but it would be nice to know that you see them so that you can think about them when possible.

Is it possible to limit the number of shares that an asset allows? I do not want to open up the LLC to random 1$ investors. They will not receive a good roi, and it would be a nightmare for me to try to keep track of a million 1$ investments.

EDIT: Can a feature request be made to allow accounts to input all of that information so that they can be "pre-approved" for investments similar to this? Decentralized protection of data that allows you to purchase shares in centralized companies sounds good in my head.

Also, whitelisting: does this mean I could whitelist particular account names so that only they could purchase a share? If so then that would be great since I could gather all the "know your customer" (in this case partner) information needed for the LLC.

What about a REIT that only sold to people not living in the US. That might get you off the SEC's radar.

REIT has a ton of requirements. I personally would not qualify for this since a majority of my income does not come from real estate currently. Most of my income comes from IT.

EDIT: I'm trying to avoid heavily regulated options.

What will happen if someone lost his/her token? In real world, you can get back the account will your ID card or other things. it is dangerous to use bitshare because once one's computer is hacked and the shares will be lost and could never get back.
Can some give solutions to solve this problem?

This is a unique problem to crypto shares. There most likely is not a solution that you would like. I expect that it would mean that you just lost a lot of uninsured money. You could try to use law to find and sue the guilty party, but the chances of that being successful or almost -%.

Quote from: wesphily on January 20, 2015, 05:12:18 am

Some people create a new LLC for each deal depending on if the same partners are used are not. LLC is popular due to no double tax. Would it be ideal to create a new asset for each deal? I could setup the terms so that investors know exactly what they could return.

The only downside is that I'm not sure how to make it trustless. I'd have to somehow prove to others my intent to perform.

Even though LLC can avoid the so-called 'double tax', a corporation will give you better legal protection.  The entity is separate from the individual.  A corporation issues shares and you can use bitshare as a tool to issue share as tokens.  You can use the user-issued-asset for this or you can have your own bitshare tool where each 'bts' is treated as a share in your corporation.

That may be the only true way. It is many times more cumbersome/regulated/expensive to do though. My hope is that bitshares has the power to enable people on the lower end of the spectrum. If it can't then I'll need to wait for a feature/coin that can if it ever exists. "Doing for business what bitcoin did....." I'd like to believe small businesses were thought of in that quote. The first coin that can incubate small businesses will easily beat out other coins.

Quote from: wesphily on January 20, 2015, 04:35:10 am

I definitely do not want to get around laws. My goal is to increase my leverage so that I can do larger and more profitable deals. I am hoping that I can utilize bitshares in some way to accomplish this.

Why would real estate not be "dacafiable?" There are several publicly traded real estate firms.

Basically you're looking to issue your equity onto a blockchain. You can do that!

Being publicly traded doesn't make your company decentralized or autonomous. You will still be a traditional centralized company with a traditional centralized incentive structure, you'll just have your shares use hip new technology instead of being listed on NASDAQ.

That's exactly what I want to do. The reason I'm not going to be listing on Nasdaq/S&P 500/whatever is because my company would not qualify. It could qualify on bitshares though. It would enable a small business like mine to conquer larger deals while returning decent profit to serious investors.

However, would this idea be completely dismissed since the company itself would not be a dac? Has anybody else discussed an idea like this?

Hello,

I have been spending a lot of time learning everything I can about real estate from a veteran in the field. I am now in the phase of creating a business plan. My intention is to create a LLC that will invest in real estate. Is it legal to sell shares in a company through bitshares if it is a LLC? If it is not legal then is there a creative way that I could incorporate bitshares to increase investment leverage?

If this is not the correct place for this then please feel free to move the post