Sarbanes Oxley for start up company 2986

  • Thank you for this very informative forum.
    We are a small LLC start-up company, based in Europe. We will provide services to investment funds and though we are small, and taking into account the big size of our potential clients we are interested to know more about compliance with Sarbanes Oxley. At first we will limit our sales development to funds based in Europe. In year 2 after start of operations we intend to expand to US and Asian investment funds. We need some basic preliminary guidance concerning Sarbanes Oxley. Sarbanes Oxley applies also to LLCs? How could we start with it gradually? Can we advance by ourselves at first and then later when we increase our size we hire an external consultant? Our idea is not to establish now full compliance but to create from the beginning of our operations the basis to facilitate full compliance within let’s say one year from now. Thank you in advance for your advice.

  • None of the various sections within the Sarbanes-Oxley Act of 2002 apply to privately held companies. So, as an LLC, you are off the hook. You would only need to comply in the future if you later decided to take your LLC public in the United States by selling public debt or offering publicly traded equities.

  • Thank you NC_Sox. We intend to float the company two years from now but this will be in Europe. Lots of hard work to do before this 🙂
    All the best

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