Legal Question in Business Law in New Jersey

Re: Private Investor

There are many things that you can do with an investor.

Is the investor going to have an interest in your business?

Antoinette M. Wooten,

Belleville, NJ

Re: Private Investor

You did not give enough detail to answer fully but if we were representing you we would offer a promissory note guaranteed by the business with some type of payment plan. This would limit your exposure to a lawsuit against you individually. From there it would be a matter of negotiation such as offering a pledge of stock (if you were an entity) or an ownership interest (if that is what you discussed). The last resort is giving personal assurances that place your individual assets at risk.

As you can see, it is not simple so a meeting with an attorney would be helpful in assessing what you want to (and should) do.

If you would care to consult on this matter please feel free to call for an appointment.

Disclaimer: Your question and any response given are not intended to create an attorney-client relationship. The response given is not intended to be relied upon by you or anyone else as it is based only on the limited information which you have provided. Other information is needed before advice can be given including facts which you have not supplied which may change the response to your question. You should consult with an attorney as soon as possible to assess your legal rights so as not to prejudice yourself.

Re: Private Investor

I agree that more information is required. Some written agreement should be done, spelling out the rights and obligations of the business and each party, plus what are the investment terms, what providing the seed money entitles the investor to receive (return on investment, business documents, profit and loss statements, etc.). These are normal documents when more than one person is involved in the business. If you need assistance, contact me directly.