If you are just doing a one-off loan, you don’t need to be overly concerned about Rule 506(b) — especially if your investor is accredited. With a single investor, you may also want to consider structuring this as a joint venture (where everyone stays actively involved in generating their own profits).
You will generally start thinking about structuring a securities offering when you are either repeatedly borrowing from private investors and your business depends on it, or you are selling passive interests in a company to multiple investors.
Should You Really Start a Fund?
We get potential clients who reach out to us every week who want to start a fund. While we could simply take their money and set them up with fund offering documents, we actually talk a lot of people out of doing a fund. Why? Because they don’t have the necessary...