Help on investing in small businesses

Carl Hume-pankulis

Newbie Member
BMF Tokens
140
So I have a friend that wishes to start her own business but she needs capital.
I am willing to give her the needed capital of £2,000 for a 15% share in the business...

I have no idea what I'm doing!!
Iv never invested before, iv never ran a business, I have some spare cash that I'd rather invest in someone than be sat in the bank.

What do I do in regards to tax?
What type of contract do I need to create and how do I create it in order to not get stung or even kicked out of the business if we ever fall out for whatever reason?
Do I need to seek a solicitor?
What other things do I genuinely need to look into doing?

Any and all detailed information you can offer is appreciated.

Many thanks,

Carl
 

Harvey

Platinum Member
BMF Tokens
1,076
What type of contract do I need to create and how do I create it in order to not get stung or even kicked out of the business if we ever fall out for whatever reason?
In our country, if the business has 2 owners, you need to go to Department of Trade and Industry and register the business as partnership and if there are more investors each has different percentage of shares and amount of capital invested, it should be classified as corporation.

-former entrepreneurship student (we're 5 members in the group but decided to register our school business project as sole proprietorship under the name of one of our group mate)
 

Carl Hume-pankulis

Newbie Member
BMF Tokens
140
Hey,

I am from England which is also where the business is.
Also the business has 1 owner and I will be the sole investor so it will make life alot easier

Many thanks,

Carl
 

Brain

Silver Member
BMF Tokens
1,195
I will advised you bring in a lawyer to write out every details of the business and get you to know the workings every thing that would be done in.conjuction with the owner. Don't take friendship into business of this magnitude.

Let everything be documented and contract plan drawn out and signed by both parties and their witnesses.Good luck on this because you will surely need it.
 

Carl Hume-pankulis

Newbie Member
BMF Tokens
140
I wasn't sure I'd need a solicitor for such a small amount of money but as I said I don't really know what I'm doing lol.
I'd like to have a rough understanding on what I will need to expect or even mention to the solicitor as I know they charge by the minute haha.
This is why I thought I'd come to the experience of the forum to potentially give me a rough insight on what to do

Many thanks,
 

Similar threads


Top