MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
My daughter is in the process of starting an internet based business, whereby she designs new products and sells them through a website she has set up.
It is proving to be a very popular idea/brand and is going beyond what she can manage whilst in her final year at uni.
She has attracted the attention of someone with financial muscle and is considering going in to partnership with considerable investment.
Can anyone recommend some reading or advice in order that I'm able to point her in the right direction to protect her interests.
I know there many people around these parts with experience with this type of thing, so would really appreciate a few pointers as I am quite clueless.
Thanks
Lawyer, accountant and Private Investigator?
These are friends of the family, business types who are seeing the potential
Even more so, sorry. Doing business with friends/family ends up with another post on here. If you were engaging anybody or making a contract why would you not seek legal advice?
Not assuming malice but just making sure things go right.
Even more so, sorry.
This without a shadow of a doubt and if they get arsey at this, you've got a very simple question to ask yourself. They'll understand and appreciate it if they are in anyway serious at this business malarky.
I totally agree, it would be all to easy at this stage to pinch what she has built up to date.
Make sure they both agree what success is. Your daughter might be happy making a decent living but the investors might want the next etsy.
Is the financial muscle wanting to buy into the business as a partner or just to get a return on their investment?
Issue private shares, it's the easiest thing to do and is tax efficient as well. Get the value of the company valued by HMRC and get on the ESS bandwagon. It raises cash for the business, lessens the tax burden and then hopefully at point of selling the company everyone makes a pretty penny.