Someone desires to invest 100k in me.?
A friend of ours that owns a business requirements to invest in my wife. The investment is 100k (maybe more) and she does pelt so it'd be a salon. What question should I ask to more or smaller amount protect myself and her from anything unforseen that could transpire when we adjectives sit down together ? The investors control of the company/salon 51% and my wife and I would control 49% however we would be nominated as the owners. Can anyone give a hand ?
Answers:
I would incorporate, and issue stock, perchance authorize aobut 3,000 shares of adjectives stock beside 200 shares of stock outstanding, where on earth they own 102 shares, and you and your wife own 49 shares respectively (98 shares), giving them their 51% and you and your wife equal shares. Or you might consent to your wife own more since she is doing adjectives the work.
That mode you and your wife can purchase simply 4 shares of stock from them to gain control following. Of course, those 4 shares might cost over $100,000!
Or, if near are more than one investor specifically a shareholder, adjectives you would own to do is convince one of them to do something your reticent if you you looked-for, to hold a shareholder majority.
Or, if you can convince the board of directors to adopt an set aside to adopt an submit from you to purchase more shares, you would gain control. Be far-sighted of this though, they commonly hold controlling share clause that would consent to them acquire more shares if you acquire more, so they can argue control. Remember that control is base on the outstanding shares, not authorized shares.
I don't get the message why they would want you nominated as owners if they will own 51%. This is why you incorporate. The business become a seperate entity, and the board of directors runs it, and hires a president, secretary and vice president. I suppose you should consult an attorney who specializes contained by this nouns. An attorney who is retained by you and your wife, not by them.
If you are the owners, even so they run the business in the framework, won't that gross you liable for the debts they incurr in the business?
Consider this:
Incorporate, and issue them bonds on their investment, and you and your wife enjoy adjectives the outstanding shares of stock. That would provide them a guaranteed return on their investment, which is debt and not equity, and have nouns over stock within satchel the company go beneath. As stockholders, you contribute them control by voting them as board of directors. That style you really are the owners, even so they own the liability of person the board member.
What really bothers me roughly what they are asking, is because it is dishonest. They are the definite owners, even so you must enlighten the authorities you are the solid owners. Any time somone desires you to fake for them, I bring back suspicious. Why would they invest $100,000 and ask you to fib and read aloud you are the owners when they really are?
I presume I would run a credit and backround check on them also.
I know you said this is a friend of yours. I guess it depends on how all right you know this friend.
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Answers:
I would incorporate, and issue stock, perchance authorize aobut 3,000 shares of adjectives stock beside 200 shares of stock outstanding, where on earth they own 102 shares, and you and your wife own 49 shares respectively (98 shares), giving them their 51% and you and your wife equal shares. Or you might consent to your wife own more since she is doing adjectives the work.
That mode you and your wife can purchase simply 4 shares of stock from them to gain control following. Of course, those 4 shares might cost over $100,000!
Or, if near are more than one investor specifically a shareholder, adjectives you would own to do is convince one of them to do something your reticent if you you looked-for, to hold a shareholder majority.
Or, if you can convince the board of directors to adopt an set aside to adopt an submit from you to purchase more shares, you would gain control. Be far-sighted of this though, they commonly hold controlling share clause that would consent to them acquire more shares if you acquire more, so they can argue control. Remember that control is base on the outstanding shares, not authorized shares.
I don't get the message why they would want you nominated as owners if they will own 51%. This is why you incorporate. The business become a seperate entity, and the board of directors runs it, and hires a president, secretary and vice president. I suppose you should consult an attorney who specializes contained by this nouns. An attorney who is retained by you and your wife, not by them.
If you are the owners, even so they run the business in the framework, won't that gross you liable for the debts they incurr in the business?
Consider this:
Incorporate, and issue them bonds on their investment, and you and your wife enjoy adjectives the outstanding shares of stock. That would provide them a guaranteed return on their investment, which is debt and not equity, and have nouns over stock within satchel the company go beneath. As stockholders, you contribute them control by voting them as board of directors. That style you really are the owners, even so they own the liability of person the board member.
What really bothers me roughly what they are asking, is because it is dishonest. They are the definite owners, even so you must enlighten the authorities you are the solid owners. Any time somone desires you to fake for them, I bring back suspicious. Why would they invest $100,000 and ask you to fib and read aloud you are the owners when they really are?
I presume I would run a credit and backround check on them also.
I know you said this is a friend of yours. I guess it depends on how all right you know this friend.