Where do I file Blue Sky Notices if An Investor Invests Through an LLC?

If an Investor is using an LLC to make their investment, you would use the state of LLC formation as the state of residence instead of where they physically reside. As far as the law is concerned, when you form a legal entity, it’s like giving birth to a new “Person” with its own rights and duties, separate from its members. So for filing state securities notices, we would rely on the entity formation state as to where we file the Blue Sky Notices.

However, for an IRA, we would rely on the investor’s home state of residence for filing Blue Sky Notices as an IRA is not a separate legal entity; it’s just a means for the individual to create a retirement savings account (i.e., IRA = Individual Retirement Account).