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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118171
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am sending an individual a presentation discussing a

Customer Question

I am sending an individual a presentation discussing a business that I want to start. He is interested in investing, but I want to make sure I'm not running afoul of any securities laws. Do I need to put in a disclaimer, or language that covers me, I.e. That this is just a conversation, not an offer? Does it matter if the individual is considered a co-founder? Can I put in writing the size of the investment I need and what equity will be given in exchange? Basically. The potential partner wants to see the info and what they would receive equity wise. I just want to be covered and not put anything I shouldn't in writing.
Submitted: 2 years ago via Cornell Legal Info Institute.
Category: Business Law
Expert:  Law Educator, Esq. replied 2 years ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

If you are going to be soliciting him for becoming a co-founder or co-owner of the business, it is not an offer to sell securities and on the offer itself you put on there that it is not an offer to sell any securities, it is an offer to participate in a business opportunity . That is all you need to do. There is nothing more you need to do. You are recruiting a business partner, you are not merely seeking to sell shares and as such by putting that on your offer, you would be covered.