Looking For Outside Capital For Your business

21 May

It is common these days for entrepreneurs to seek outside funding for their small start-up business. Investors are looking for a return on their money. Therefore you need to be aware of investor’s rights if they invest in your business. Investor’s rights will be dictated by whether there is an investor agreement and whether you have incorporated or registered with the State. For example corporate shareholders may have different rights than limited partners in a partnership.

Typically however an investor’s rights include:

* The ability to inspect books and records of the business

* The right to as full and accurate accounting

* The power to sue if there is misconduct by those running the business

* The option to cash out upon specified events

* The right to vote and be informed of major decisions 

In short, before you start looking for capital it may be wise to consult a business attorney so that you know what to expect when raising capital.


Stephen J. Gross is a business, real estate, wills and trusts, and asset protection attorney located in West Los Angeles.

A free 1/2 hour phone consultation is offered to PagesLA  readers. Our phone number is 310- 652 8090. To learn more you can visit sjgassociates.com.

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