Legal Question in Business Law in New Jersey

venture capital

I, and six others, plan to invest up to $10,000 each in a small, start-up internet service provider to be stablished and incorporated in the next few weeks. In what form should the investments be (such a partnerships risking loss of capital as well as potential profit as well as loss), preferential shareholders with a guaranteed return after taxes, salaries and other legal obligations are paid, or as ordinary shareholders with risk of some or no dividend. what legal form should the ISP take;s-corp, partnership or what?


Asked on 2/18/00, 10:14 am

1 Answer from Attorneys
Robert Gleaner Robert A. Gleaner, P.C.

Re: venture capital

You should not be getting involved in this enterprise without the advice of counsel. You are asking some important questions which cannot be answered in this format. Think about it. You are planning a major enterprise, risking a significant amount of money and trying to do it with free internet legal advice. This format is very good for simple issues and more importantly, to recognize the issues that cannot be resolved in this format. You should seek the advice of an attorney to review the entire situation. If you want me to assist you, call me at 856-546-8010. Mention LawGuru and the first consultation is free. Good Luck! Rob Gleaner

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Answered on 2/24/00, 9:32 am


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