There is a lot of noise on this thread, and I want to make sure everyone knows that the Devs of Karmacoin (the op, etc) have absolutely nothing to do with Karmashares LLC.  The reason it is important to note this is Karmashares has a huge legal liability as described below, and the Devs ARE NOT responsible for any money lost by people who invest in Karmashares.  The Devs do not endorse investment and in fact strongly warn against it.  Here is the core issue regarding what can happen

1) Kosmost allows people to purchase a percentage of the Karmashares LLC entity with a promise that they will get paid a portion of profits the company makes.  These people are then Owners.

2) If Karmashares LLC is successful, and Kosmost sells the company, there is nothing that says what Owners will get in a company sale (asset sale or stock sale).  Kosmost could technically pocket the entire amount received given that he is the sole legal owner as defined in his LLC documents.  The Owners may not receive anything.  We, the Devs, do not want the Owners to look towards us at that point as we have nothing to do with this for-profit venture

3) If Karmashares LLC makes money, there is nothing that would stop Kosmost, as the sole CEO and legal owner, from giving himself a quarterly bonus right before the profits are to be shared.  The bonus would spend all of the profits so that there would be nothing left to distribute.  Owners again would look to someone to sue, and we want to make sure they know the Devs are not in any way responsible or associated.

4) If someone else sues Karmashares LLC, anyone designated an Owner (assuming the paperwork is proper for their stock certificates) would be liable for damages. This means the person who puts in 1000 Karmacoin would be liable for paying someone who wins a lawsuit against Karmashares LLC.   The Devs again are not associated with this entity and are not responsible.

Yes, the LLC is a legal entity and for some reason Kosmost believes showing where the LLC is incorporated mitigates these major problems.  Anyone can create an LLC on LegalZoom in about 20 minutes. In addition, a promise of transparency for the financials of Karmashares LLC still does nothing to fix these major issues.