So my friend is starting a company that does Forex trading and stocks, he claimed that the company will help clients invest and make money.
He needs some money to get a few operating expenses out of the way.
I told him I’d give him the money if I could have 15% of the company. He agreed. He also wants to pay me 15% of the monthly net income (he is adamant that I get a great return).
I don’t have a problem with that but should I take this in a different form, than monthly checks, instead? Like dividends or something? It’s as if I’ll be an investor but also a contracted employee with his way of doing things.
Doesn’t seem right with tax implications. I feel like I should know this but I don’t.
So about 3 months after I put in my money he went missing and the company was shut down.
What are my options?
Here are what netizens think:
- If this is a company with any substance, listen to what others have said about reinvesting any income/profit. Also consult a lawyer
- Don’t invest anything that you aren’t prepared to lose. But take a percentage and if you’re receiving money out it should come as a dividend. Although I’d recommend not taking money out – however you might also want a board seat so you can keep an eye on your investment and have a say if the company starts tanking etc.