"Sorting out" Issues...

[patrickt]

Originally Posted by RodKnock

BTW, Patrick knows everything. Maybe he could chime in and give us his thoughts. I'm surprised he hasn't since he gives his thoughts on virtually everything else here on CC.

In regulated industries, the use of "related entities" to do what the parent is prohibited from doing is done all the time. Yes you need to dot some I's and cross some T's, but it is so common-place that in a lot of environments the first question, when a good deal is put in front of them, is "great, now which one of our companies can do that." MarkIV is simply not comfortable dancing down the road, and there's nothing wrong with that. I have little doubt that if he contacted any of the NY regulatory firms and asked them "Would you please help me sketch out a way that I can provide this service to willing buyers so that I will not expose myself to significant liability either at the state or federal level" that they would help him do it and give him a formal opinion, that if he does what they outline, he will not be in violation of state or federal law. That stack of paper will not be cheap though. Depending on the firm it could run as much as an SPF.