QUESTION
If someone gives me 20,000 to start my cosmetics line, what percentage of my company should that person have?
Asked on Nov 30th, 2012 on Patents - Nebraska
More details to this question:
A friend has given me $20,000 to start my cosmetics line. Is she considered a partner or an investor and what is the difference? What is typically done in cases like this? How much profit should she be getting, once my company starts to make revenue? How much interest should she be getting back?
2 ANSWERS
This is something you should discuss with them. I have no idea what your company is worth.
Answered on Dec 05th, 2012 at 3:46 AM
It is usually up to the investor and the company owner to determine the investor's interest. It may be a loan that has to be paid back with interest at a certain time, it may be an investment in the company itself in exchange for stock or a percentage of the company. Talk to an attorney and an accountant before accepting the money.
Answered on Dec 05th, 2012 at 3:44 AM