Private Investor - How do I get the money?

CoreCompCoreComp Posts: 2subscriber
edited March 2009 in Startup Funding

Hello....newbie here. I`m doing alot of research to understand how the fine details work, but with all of the good information I see here, I`ll ask..


 

I have found a private investor to provide me with the startup capital, and additional capital for expenses as needed until my new business become profitable. We are still working out details, but how do I accept his 100k? What do I need to do for tax purposes, etc? Can someone point me to a website or post that discusses how to accept the money and apply it to the new business?


 

Comments

  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    First of all - congratulations on connecting with an investor.
     
    First of all, you should both agree on the terms of the deal.
          Is this a loan. If so to the business or you personally.
    Second, you should establish a separate business entity.
         If this deal is a personal loan - technically you don`t need a separate entity - but I`d do it anyway.
    Third, prepare the necessary documents to correctly consummate the transaction
    Have an attorney prepare or review everything before you sign.
     
    FYI, the comment  "additional capital for expenses" is way too nebulous as far as I`m concerned.
          
    If you want to discuss specifics - contact me directly or send me a PM
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