But what if...

DeepBlueDeepBlue subscriber Posts: 1
edited July 2008 in Startup Funding
Hi everyone,
I`ve been visiting SUN for a while, but until now have never joined and posted.
I have done quite a bit of work (electronics mostly) over the years with inventors.  One particular project has progressed through patenting and the building of a working model for presentations, etc.  The market for the product is very good.  The inventor has put together a team and is going to look for start-up money.  He has invited me to join the team for a stake in the new business.  Since the new business is incorporated, are the team members shielded financially in the event the start-up fails?  While the possible return is great, I can`t risk my house, etc.
 
(Sorry if this sounds naive; my days are spent with my nose to the circuit boards, not in the Wall Street Journal!  Any advice on how I can evaluate the offer would be appreciated.)
 
Thanks

Comments

  • robertjrobertj Tampa Bay, Floridasubscriber Posts: 0 Member
    In general - employees are not responsible for the obligations of the corporation.
    Stockholders are usually not responsible for the corporate obligations as long as the corporation has been properly maintained.
    Officers are normally not personally responsible for the corporation`s debts etc - however, if their "behavior" is inappropriate that could change.
    Just make sure you understand what (if anything) you sign.
  • KevDevKevDev subscriber Posts: 5 Member
    DeepBlue:
    To put what Robert said in smaller words, if your corporation is properly structured, what you can lose is limited to your investment.
    Don`t want to lose your house? Don`t invest it.
    And I would underline the suggestion that you understand anything you sign, and emphasize, get it in writing!
    Good luck!
Sign In or Register to comment.