Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Any company can accept money in exchange for ownership interests. If the company is a corporation the investor will receive stock. If it is an LLC the investor will become a member of the LLC and the money he invests will become his capital contribution to the LLC. The securities laws of the USA may come into play here, if shares in the company are being offered to or sold to a large number of investors. In that case, the stock may be viewed as a security which requires registration under the securities laws, or an exemption from registration. If this is the case, the company needs to retain a securities attorney.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).