Legal Question in Business Law in Colorado

Re: Agreement Form for Investor

No, there isn't a "handshake" type written agreement. Lots of questions here. Here are some of them:

1. Is the investor actually lending you the money or is he willing to take an equity interest in the business?

2. Are you willing to give him an equity interest?

3. What form of business are you? What's the best form from a tax perspective?

4. From a securities perspective, is he an accredited investor?

5. What is your deal on repayment, if any?

Unfortunately, there are no real short cuts for this sort of thing. You need to contact an attorney and an accountant to have this situation reviewed before you do anything further.

Re: Agreement Form for Investor

You are walking straight into a minefield unless this is reviewed and drafted by an attorney.

As discussed already, there are any number of important questions that must be asked. This investment you discuss may actually be an "investment contract" which makes it a security.

To sell a security you either must be a public company under the 33 Act (which is essentially impossible in this circumstance) or this investment contract must qualify for an exemption under the 33 Act.

This is not some theoretical discussion or some attempt to deceive you. This is a serious matter and one that may involve federal in addition to state law. If this is a security and you don't proceed as required under law, the investor can get all their money back and you can be liable for other civil and administrative claims.

Do not even think about doing this without advice of counsel.