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Question added to topic MoneySeptember 11, 2007

Do I need a lawyer to sell percentages of my company and set up a formula for how my investors get?

We've been in the clothing business as a side project for 3 years. We are in 40 stores and are growing rapidly. Until this time we have funded everything ourselves however we are looking to sell a small percentage of the company to raise the capital it will take to grow our business. It will lower some of our debt and be beneficial in a lot of ways. We have numerous people interested however I am hesitant to pull the trigger on getting anyone else involved in this crazy business, especially friends. Are there any books that you guys reccomend?
Yes, selling shares in your business definitely requires very detailed legal help. The Securities and Exchange Commission (SEC) has strict rules related to selling shares.

Tim

Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.

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