Equity Financing of Your Business

Written by Adam Peck Category: Injury Law January 16th, 2013 1 min read

Financing your new business with equity makes sense when you want to share the risk, rather than taking on all the risk yourself by obtaining a loan. The risk is shared because your investors become co-owners, and each offers some money or services which they risk losing if the business fails. In exchange for taking this risk, your investors become co-owners of the company indicates California Business Lawyer Steven C. Peck.

Your investors will typically want some type of protection, so that they know only their invested amount of money is at risk. You can offer this protection by setting your business up as a limited partnership (and making those investors limited partners), a corporation (and selling those investors stock, making them shareholders) or as an LLC (making the investors members of the LLC).

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.