If your business partner gives you funds to start a business, but you have to start sourcing for more funds elsewhere since their investment wasn’t enough, doesn’t it mean that as you keep adding your own capital, you should dig in to a fraction of their equity???
Teach me finance and business, Businesses owners only, employees go to sleep it’s past your bed time you have work in the morning! #askNostr
Communicate, communicate, communicate.
Doesn't matter which path you take, as long as you discuss it and agree before you take the third party's $$$.
(Preferably in writing, because motivated forgetting is a thing that happens.)
Thanks for the tip !
It is important to have an operating agreement with any investors or partners. Do you have articles of incorporation?
Typically, when you seek new investment in the company, then you will need to either sell some of your shares or issue new shares which will dilute all the investors. Although selling new shares is common, you can't just do this without permission from other shareholders. That is why you need an operating agreement, which defines what you are able to do with or without a vote by the investors.
Do you have articles of incorporation or a description of your limited partnership?
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