To succeed in business, you need money. You need it not only to get started, but also to expand and to ride out periods when your cash flow may be down.
When your own savings are not enough, you must turn to outside sources. These fall into two broad categories: loans and equity investments.
If you get a loan – whether it’s from a bank or a friend – you’re obligated to pay back the money, but you still own the business. If you bring in equity investors, however, you’re taking on co-owners.
Let’s review some legal and practical points for dealing with
