Legal Question in Business Law in Nebraska

A website(in MN) has offered to give me 10% of their business in return for marketing their business to the fullest. What should I be worried about? Are there any things I should have them sign also? If there was a law suit towards their company, would be at risk(as a 10% owner)?


Asked on 7/19/10, 7:15 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

Your biggest concern should be a business one - what does a 10% interest in a small, non-public company get you, other than a piece of paper (stock certificate)? It has no tangible value, you can't sell it, there is no guaranty (or likelihood) any dividends will ever be paid. You can't participate in any meaningful way - you're just a minority stockholder. Think about these issues before doing anything. Consult with a good business attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 7/20/10, 6:51 am


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