Legal Question in Business Law in California

Re: partnership

Your question is hard to answer because it is something like "I'm thinking about getting married - what is it I need to know or do?"

Well, maybe not quite that broad, but atill hard to answer without giving general statements like "Go to a major university and get an MBA, then get 40 years of progressively more responsible business experience and street wisdom from the school of hard knocks."

I would say in general that you need to perform what is called "due diligence" on the proposed investment, which includes reviewing the business plan in detail, understanding the product and markets for it, and verifying the reputation and experience of the people extending you this so-called opportunity.

You mention being asked to become a partner. If you literally mean that you would become a partner in a true general partnership, I'd say you should turn and run the other way as fast as possible. Partners are 100% liable for debts of the business, and the risks are extreme.

Finally, if it is a corporation or LLC, or a limited partnership (LP), don't invest more than you can afford to lose.