Skip to main content

How to list partners on a startup business

Albany, NY |

Looking to take on 1 or more investors to fund a small business idea in new york. Typically how would they each be listed as 10 or 20 percent owners. Is that just listed on my states LLC or corp. forms? Or done by civil contract? Would it be any different if the investor (s) were not a citizen or permanent resident of the US?

+ Read More

Attorney answers 3

Posted

Don't do this by yourself without a lawyer. Issuing securities is not like filing for a name change. Fraud in the issuance of a security is much more expansive than fraud in a commercial transaction. Any written communication you make will be held against you in the worst possible interpretation. Avvo has so many good business and securities attorneys you can choose from under the Find a Lawyer function located at both the top and bottom of each page.

PS - yes, there is a huge difference between a domestic and foreign investor in terms of regulation.

The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.

Posted

Please retain a good tax and business lawyer!!! This is too complicated to"do it yourself". Your attorney will draft an Operating Agreement that will address the rights the investors and protect you.

Good luck!

Ron Cappuccio

If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary for you to try prove this answer is "wrong" or something with which you do not agree. This is a free service for you based on limited facts. Nevertheless, many times you need to consult an attorney with the details to get actual advice specific to your concerns. Do not put too many details in your questions or comments because this makes the information public and could hurt you. Government Regulations contained in IRS Circular 230 regulate written communications about Federal tax matters, including e-mail, between us and our clients. This is another attempt by the government to limit your rights and to extend the control of government over individuals and businesses. Nevertheless, such communications are either opinions or other written communications. This is not an opinion. It is other written communication and was not written to be relied upon, by itself, to avoid any tax penalties. In order to receive assurances of protection from tax penalties from a written communication, you should get an opinion letter. If you would like to discuss an opinion letter relating to any matter, please contact me and I will explain what is involved and what it will cost.

Posted

You likely need an offering circular describing your company, business, history and experience. This is a complex legal document with liability for any misstatements or omissions. You must hire an experienced securities lawyer to help you with it.
Oddly enough, sales to nonresident aliens are exempt, but you still need to consult a securities lawyer about it.

DISCLAIMER—This answer is for informational purposes only under the AVVO system, its terms and conditions. It is not intended as specific legal advice regarding your question. The answer could be different if all the facts were known. This answer does not establish an attorney client relationship. I am admitted only in California. (Bryant) Keith Martin

Business topics

Recommended articles about Business

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer