What is the best method for adding investors or investment to your LLC in San Diego? What are the critical issues associated with raising equity or attracting the right partners to become members of your LLC? How can you attract the capital necessary to grow and expand the success of your company without giving away too much control? Generally speaking there are two primary methods to consider when adding investors or investment into your LLC – incurring debt or offering equity. You may wish to consider adding members who can contribute needed capital as well as additional expertise which compliments the existing members of the LLC. A private equity offering allows your business to remain “privately held” while offering a position of equity in the company to individuals or groups of investors.
The Watkins Firm’s experienced business attorneys provide sound general counsel to all businesses. Part of this relationship is to guide an LLC and its ownership through the complications of federal and state securities laws to ensure full compliance. Nothing can put the company or it’s members in serious legal jeopardy faster than securities law violations associated with the implementation of new capital. Our attorneys develop a clear strategy and supporting documents which disclose the risks and meet all federal and state requirements while explaining the purpose for the investment funding and how it will be repaid.
We advise our clients on issues of control, passive and active investment and how to protect the company from those who would approach as a seemingly friendly investor only to later execute a hostile takeover of your company. This is a genuine risk, and adding investors or investment to your LLC must be done with substantial legal structure and in compliance with all federal, state and local laws.
If you are interested in adding investors or investment to your LLC we invite you to contact the Watkins Firm or call 858-535-1511 for a free consultation.