Legal Question in Business Law in Colorado
llc
I was recently confronted with a business opportunity to make money in real estate as a property scout. In good faith I have to put up $5,000. I have checked with the BBB, who could only tell me that the company has had no complaints filled against it in the past 12 months.
The Secretary of State Office, listed the company as an LLC in good standing. What does this mean? Am I on the throws of being ripped off?
5 Answers from Attorneys
Re: llc
All that tells you is that the company legally exists. It says nothing about the condition of the company or its reputation. At the very least you should obtain some positive references about the company. It sounds like a very risky proposition.
Re: llc
It sounds like you have good reason to be skeptical. Could this be a Ponzi scam? Why does this business want $5,000.00, and what do you get for it? The secretary of state�s website can tell you how long the business has been in existence and court records are available online at cocourts.com. You may also wish to contact the Colorado Attorney General�s Office. Bottom line: be very, very cautious about parting with your money.
Re: llc
You need to do some basic due diligence, starting with additional background checks on the company and a request for disclosures.
Re: llc
As the other attorneys have stated, the BBB is very limited in scope and a company in good standing just means that they have paid their state fees. It does not give you any indicator about the company's program. What are you going to get for your money? $5,000 is a lot of money to send half way across the country to an unknown company. I have an office in Colorado Springs, if you want some assistance finding out if any lawsuits were filed against them just email me to discuss.
Re: llc
Yes!
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