Legal Question in Business Law in California

I am seeking potential investors for various business and investment opportunities. If I have friends that know people with money to invest in is it legal for me to offer them, my friends a percentage of the investment amounts they are bringing in?


Asked on 1/04/11, 4:10 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Soliciting investments is a regulated activity, and receiving compensation for it would add another level of rules and regulations. Only persons with a security broker's license should receive compensation for third-party arrangement of securities or investment transactions.

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Answered on 1/09/11, 6:30 pm
Ashley C L Brown Law Offices of Ashley C. L. Brown

If you are looking for equity financing, you have to comply with the various state and Federal securities regulations. However, if you are looking to obtain debt financing, the process would not involved the sale of securities and should be simpler.

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Answered on 1/10/11, 8:23 am


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