But the problem was, he had made things too big, the impact too negative.
So, very cleverly, he took the initiative to step forward and declare, "I have no obligation to bear this, but I am willing to take it on," seeking ways to mitigate the impact.
But such a statent had no legal force, so creditors could only continue to be led by the nose by him.
Let’s not talk about what happened afterward; let’s just talk about his top-level design—isn’t it aweso?
Actually, a simple search on Sky Eye would reveal many companies with similar structures.
But internet startups rarely use it because if you do this, who would trust you enough to finance you?
Jia Xiaozhou is another case; let’s not ntion him.
Han Lie faced problems similar to many internet enterprises: if he went too far, savvy clients might object, thinking he always seed ready to take his money and run.
If he didn’t engage in top-level design at all, it would definitely cause trouble when it ca to equity investnt after the business expanded.
After much thought, Han Lie studied materials like "Company Law" and "Managent Studies" over and over. Finally, he decided to take a middle ground.
How to compromise? In the early stages, just set up a simple corporate-style private equity firm and be done with it.
1. Directly establish an investnt company.
2. The company’s business scope will include securities investnt.
3. The shareholders will be all current clients: Panzi, Old Dou, Old Zhang, Fatty Sheep A, B, C, and D, plus Han Lie. The eight of them will divide company shares based on their capital contribution ratios.
4. The company will directly open a channel with a securities broker and use company funds to trade stocks.
5. Han Lie will not be the company’s legal representative or manager. Instead, he will be the "Capital Manager," legally collecting capital managent fees and performance incentive fees. The fee structure, percentages, and receiving bank account can all be determined by mutual agreent.
6. All fees will be recorded as company operating costs.
7. Net profits, after deducting costs, will be distributed as dividends based on shareholding ratios.
8. If there’s a need for further fundraising or if soone wishes to exit, they simply need to re-register with the Bureau of Industry and Comrce. This will be treated as a "capital increase and share expansion" or "capital decrease and share reduction."
9. Another exit strategy is through private share transactions.
This isn’t a conventional private equity managent thod. It can’t scale significantly; it’s more for a small group to manage among themselves.
But it’s convenient!
The hassle of subscriptions and redemptions is offset by the convenience in terms of regulation and approval, plus the freedom in investnt direction and operational flexibility.
In fact, many of the "So-and-So Investnt Companies" that popped up later basically operated this way.
With a competent manager and three to five, or even up to eight, wealthy clients, such a firm can be launched easily.
The operational costs are incredibly low.
A legitimate private equity firm must be located in the CBD, in a Grade A office building in a pri area. Otherwise, how could clients trust you?
However, a corporate-style private equity firm can make do with any obscure corner. Since there’s no need for large-scale external fundraising, it’s perfectly comfortable, even ideal, to set up shop right below a foot massage parlor.
In Magic Capital, the forr costs a minimum of 1 million RMB annually to operate, usually exceeding 2 million RMB—the bigger the firm, the more expensive it gets.
The latter can operate lavishly on 300,000 RMB and even write off plenty of foot massage receipts...
But it has one major drawback—
Double taxation.
First, corporate tax, and then personal inco tax for the manager... It truly freaking hurts!
So, I have to find ways to legally minimize taxes. Either register in tax havens like the Cayman Islands or Bermuda... or register the company as a "high-tech enterprise" to enjoy nurous tax incentives.
Han Lie dismissed the forr option, but the latter was entirely feasible.
Actually, Han Lie himself wasn’t overly concerned about tax avoidance. The stock market will eventually beco my personal ATM, he thought, and any taxes paid are just money fleeced from the retail investors anyway. But that’s not how one should conduct business. If there’s a solution and I don’t implent it, what will my collaborating clients think? They might think I either haven’t thought things through properly and have poor managent skills, or they might suspect I have ulterior motives and am not being transparent. Dragging everyone down to lose benefits together would only lead to being ostracized from the circle. It’s simply not worth it.
So, Han Lie’s plan was to first achieve so results and gain the trust of the ’Fatty Sheep’ group and Old Zhang.
Then, he would hold a eting and use a corporatized fund as a transitional step.
The registered address will be in Magic Capital’s Hongkou Hedge Fund Park, which offers tax reductions and subsidized office spaces. I’ll get Panzi to secure "high-tech enterprise" status for us. That should help keep the overall tax rate around 20%. Next, I’ll focus on making money and building a reputation. When the ti is ripe, I’ll establish a proper fund managent company, go all out, expand rapidly, and make a fortune in a bull market. During this growth process, I can’t waste the two-day weekends either.
Luxury cars, mansions, uninhibited won, designer watches, high society, the allure of fabled beauties—Han Lie didn’t want to miss out on any of it.
Having drifted through school for so long, his mindset was now mostly adjusted. His first pot of gold had arrived even earlier than expected. It’s ti to venture into the vast world and ride the winds and waves!
Lying on the hotel’s big bed, with his subsequent path now clear, Han Lie felt a surge of excitent.
As he envisioned the wonderful future, he spontaneously set three small goals for himself—
First, after the New Year, when I return to school, I’ll reward myself with a real luxury car. I’ll drive it onto campus to stun those idiot classmates and the girls from the ’Harem Departnt,’ letting everyone know: it’s my house!
Second, by the end of next sester at the latest, before the transfer student exams, I’ll reward myself with a top-tier luxury apartnt. Then, I’ll use Consumption Value to acquire at least two Level 5 skills and boost my Appearance, Physique, and Special attributes to 89 points—the peak of genius! You two weren’t convinced at 79 points, huh? Well, what about 89? From now on, call Bro Beast!
Third, those puny sprouts and little cucumbers are just side dishes. Within three months, I need to reward myself with two more ’main-course’ caliber won for the roster. As for who specifically... Don’t ask. Anyway, beauties at the level of Lou Xiaoxiao and Wang Tianqing don’t qualify to be the main course. As for little desserts, well, the Literature and Art Departnt has plenty of those. Winter vacation is right around the corner. That certain soone... just you wait and see if I don’t sort you out...
Allowing his desires to swell, Han Lie was not in a hurry to vent to anyone.
The journey must be taken one step at a ti. Food must be eaten one bite at a ti. No need to rush; the conditions are almost perfect...
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