A Guide to Management Companies

As an investor, at some stage you’ll have to decide whether to create a management company for your investments. The biggest reason to do this is the limited liability protection it comes with.

By forming a separate entity, you can protect yourself from personal liability, a crucial aspect of managing investment activities.

What Is a Management Company?

Typically structured as an LLC, a management company is created with the purpose of managing the operations of your VC fund. This includes tasks such as:

• collecting management fees

• accounting for operational expenses

• handling regulatory filings

• managing various agreements

A management company acts as a protective barrier, protecting fund managers from potential liabilities associated with the fund’s activities.

Setting Up a Management Company

Setting up a management company is pretty straightforward, but an extra nuisance you probably don’t want to deal with.

As a busy fund manager focused on investing, you might not want the added responsibility of handling the paperwork and ensuring ongoing compliance.

That’s where doola and our partnership with Sydecar comes in.

doola makes the process of forming and maintaining your management company hassle-free. Our platform is designed to simplify the setup, so you can concentrate on your investment goals rather than getting bogged down by administrative tasks.

Together with Sydecar, we offer a comprehensive compliance bundle, handling everything from the initial formation of your management company to ongoing annual compliance requirements.

The Total Compliance Bundle

Our Total Compliance Bundle is an all-inclusive package covering annual state filings, federal tax filings, and any bookkeeping needs through doola’s self-served bookkeeping tools.

We’ve thought of everything, even providing a virtual mail address for your business, offering you peace of mind and a one-stop solution for your management company needs.

Get Started with doola and Sydecar

Ready to simplify your investment journey?

We’ve got you! If you have any lingering questions or need more guidance, feel free to reach out.