Legal Question in Business Law in Colorado

Re: Can I raffle off my business?

There is no easy answer to this question. While I have heard of businesses being raffled, generally you may have to do it as an auction. Generally, only a non-profit organization may conduct a raffle in Colorado. The type of organization is specifically defined by statute and the organization must meet the requirements to obtain a raffle license before conducting a raffle.

I believe it can legally be done, but without further research, I am unsure of the procedures to carry it out legally. The big considerations are that by my calculations you need to sell $750,000 worth of tickets, and need to figure what happens if you do not, how will you refund money or will you still raffle the business. Primarily you need to avoid any fraud allegations, so once it is established how to do it, you must disclose and avoid any fraud allegations, or other claims against you.

If you have further questions please contact me.