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If You Are Bringing Money Into Your San Diego Business You Need to Pay Close Attention

Even if it is your own money, you have to be careful when you’re dealing with raising capital for a San Diego or southern California business. Almost every business goes through cycles where cash becomes tight, and in many cases it is important to raise capital to provide for expansion, or to complete a current project or contract. The process of raising capital exposes business owners to a variety of State and Federal securities laws, and the consequences can result in the loss of your business, and in some cases jail time. If you are a business owner who is bringing in a new partner or fresh capital we invite you to contact us for a free consultation at 866-631-3470.

There are a myriad of tests relating to business investments and whether or not a transaction triggers issues with the Securities and Exchange Commission or the State of California. Even those who successfully navigate those hurdles fail to realize they are still often required to register these transactions – even when they have met the exemption standards identified by law. There are many strategies to maximize the amount of capital you can attract without incurring additional costs or relinquishing too much control. If you are considering a private placement, public securities, an IPO, or simply borrowing money from a loved one, it is important to structure the transaction correctly to avoid legal and tax consequences down the road.