My friend wants to invest in my upstart clothing company?

by EPUSA
8 replies
Hey, I have a friend who wants to invest in my upstart clothing company and I wanted to see if anyone knew how I should go about selling stock or interest in my company.

I haven't incorporated yet but can do that. I just wanted to know if I have to get a lawyer to help me write everything up or can I do it in a simpler and more cost effective way.

Also the amount of interest I am going to sell him is 5% of my company for 25K.

Can I go to Legal Zoom for something like this?

Thanks!
#clothing #company #friend #invest #upstart
  • Profile picture of the author GrowTutor
    Legal Zoom can set up corporations and divide stock however you tell them but a lawyer might get you and your friend better protections.

    YMMV...
    {{ DiscussionBoard.errors[8384138].message }}
  • Profile picture of the author lotsofsnow
    Just go and find a lawyer. The first hour of consultation is usually free and setting up a corporation should not cost more than a few hundred bucks anyhow.
    Signature

    Call Center Fuel - High Volume Data
    Delivering the highest quality leads in virtually all consumer verticals.

    {{ DiscussionBoard.errors[8384602].message }}
  • Profile picture of the author Tsnyder
    See a lawyer... period. This may seem like a simple
    proposition to you but that's because you are unaware
    of the potential pitfalls and liabilities of what you're
    considering.
    Signature
    If you knew what I know you'd be doing what I do...
    {{ DiscussionBoard.errors[8384608].message }}
  • Profile picture of the author RestlessBlaze
    Legalzoom is your option. If you can meet offline lawyer, that is best. Anyhow, congrats on opening of your clothing line
    {{ DiscussionBoard.errors[8384698].message }}
  • Profile picture of the author Slate Marketing
    For what you are describing, I'd recommend not only getting a lawyer, but get someone local that you deal with in person and build a relationship with. Most "real" businesses should build a great relationship with a local attorney, CPA, etc.
    {{ DiscussionBoard.errors[8384706].message }}
    • Profile picture of the author Sagar Mehta
      Originally Posted by Slate Marketing View Post

      For what you are describing, I'd recommend not only getting a lawyer, but get someone local that you deal with in person and build a relationship with. Most "real" businesses should build a great relationship with a local attorney, CPA, etc.
      What he said.

      Having a lawyer you can talk to whenever you are in legal dire straits is important. Plus, legalese is confusing, and while most online companies will help you get set up etc, nothing beats having a lawyer explain it to you in terms you understand.
      Signature
      Need AWESOME Customer Support For Your Product / Service / Upcoming Launches? > Click Here <
      {{ DiscussionBoard.errors[8384712].message }}
  • Profile picture of the author rosetrees
    5% for $25k values your company at $500k. Absolutely no doubt that you need a lawyer.
    {{ DiscussionBoard.errors[8385037].message }}
  • Profile picture of the author mbfashion
    You should definitely seek advice before signing any agreement.
    {{ DiscussionBoard.errors[10823526].message }}

Trending Topics