Is it better to loan money to a business or take equity?
It’s definitely safer to loan money to a business than invest in it, but the upside is limited too. What you choose depends on your risk tolerance, your finances, and how you feel about the business you’re working with.
How do I invest in a friend’s business?
You want to help out, and your friend’s business might really take off. But you don’t want to ruin your finances or your friendship. How should you go about investing?
If a business I invest in fails, how much does that affect me?
Is losing your investment a guarantee? If you do lose your investment, is that the worst that can happen?
If I invest in a business in a different state, does it matter?
Investing across state lines can have some consequences, but in general it’s not a barrier. Know what law applies to your contracts, and make sure you understand any tax implications.
Does it matter who runs the business and who invests money?
Sometimes it makes sense to invest money in a business you believe in but keep your nose out of it’s daily operations.
What is Dilution?
Knowing how many total shares of stock a company has authorized is an important part of understanding your investment in a stock corporation.
Does an invoice count as a contract?
Usually, yes. However, it’s not a very complete or comprehensive contract – you could be leaving yourself open to a lot of risk if you are relying on it.
What is a waiver?
And why does everything fun seem to require one? It protects the provider against known risks and scammers who try to sue businesses for insurance money.
Is a contract still enforceable if it’s not signed?
The short answer is … if both parties acted like it was signed, that’s likely as good as having it signed in the first place.