While many people are eager to put money into a startup business and the businesses are even more eager to get it, there is a labyrinth of laws controlling exactly how and from whom you can accept funds. Numerous stock frauds over the years have resulted in harsh criminal penalties for those who do not follow the laws.
Stock can also be be paid for with property or even services, in some cases. For many small businesses, the complex security laws surrounding corporate stock may not apply, but it is a good idea to know as much as you can before you begin issuing stock in your company.
LegalZoom can help you form a corporation in your state. Get started by answering a few questions about your business in our online questionnaire and we’ll assemble the paperwork for you. We’ll file it with the Secretary of State and send you a final package when your corporation is officially formed.