I'm contemplating starting a LP in Illinois where I will be the general partner. I will seek to sell "units" in the LP to friends and family. The Starting Your Business in Illinois document says "Typically, public limited partnerships are sold through brokerage firms for minimum investments of $5,000.00, whereas private limited partnerships are put together with fewer than 35 limited partners who invest more than $20,000.00 each."
I will not be selling this LP through a brokerage firm but to select friends and family. My question is related to how a private LP is defined.
- What makes an LP public v. private?
- Are the number of limited partners and the dollar amount invested rules of thumb or are there strict requirements?
- Are these "sophisticated investor" requirements?
I will likely have 35 or less investors but their investments will be closer to $1,000 than $20,000. Also they will not meet the "sophisticated investor" requirements.