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Starting app business with an investor, how do I protect myself in case in grows or flops

Discussion in 'Business & Tax Advice' started by kharm, Jul 6, 2014.

  1. kharm

    kharm Power Member

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    I'm starting an app business soon, and I can get an investor

    I want to make sure that I don't mess something like sign a document or not be officially an owner, what should I MAKE SURE that I have signed? And what should I watch out for?

    Thanks
     
  2. Macthetrix

    Macthetrix Regular Member

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    you should get a lawyer
     
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  3. goosefrabah

    goosefrabah Jr. VIP Jr. VIP Premium Member

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    You will want a lawyer and to incorporate your business if you have investors. An investor will likely want a percentage of your business and a really solid plan before they jump in.
     
  4. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    Don't take any advice from forums. Hire a lawyer if you're serious about your biz. Some cities have some kind of business bureau, you can also ask there, some have free lawyers for small scale entrepreneurs.
     
  5. tony_d

    tony_d Elite Member

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    It seems like your legal knowledge is pretty limited - so you would certainly be best served in getting a lawyer, otherwise you might be caused to sign something you shouldn't have, or to not sign something you should have signed.
    That said, however, if the person you're dealing with has bad intent (or develops it along the way) there is nothing you can have on paper to stop the shit from hitting the fan - all you can hope to do is use your written contract as a mop to clean up the shit storm, and hopefully come out on top, or at least, where you 'should' according to the contract.

    It's FAR more important to be comfortable with the 'reasonable-ness' of the person you're dealing with than it is to get the paperwork right.