Investors Not Interfering
Are investors a good idea for Ron's small business, or will they not like the structure he has set up?
QUESTION: Ron has an idea for a mo-ped store and needs to get investors. Can he have investors in his idea without having the complexities of a partnership?
ANSWER: You can form a sub S-Corp and they could be stockholders in the company. As long as you own 51% of the stock, you control the business. They can put up money, but you run it and they don’t have any say in it. You can keep control that way. That would be unusual for someone to be willing to put money into though, because they have no control or say so in what you do.