What is the name of your state (only U.S. law)? CA
I am becoming a wholesale car dealer in CA, and am setting up as a sole proprietorship. My uncle is going to help me finance the business (mainly help buy the cars) on an on-going basis. Is this allowed? Will I still be able to set it up as a sole proprietorship, or does it have to be a partnership. He will actually not be involved in any way with the business activities, but will just be an investor providing capital. Also, on his end, will the profits he realizes be investment income? Hopefully the questions makes sense, but I guess I’m just trying to figure out how all of this will work. Thanks
I am becoming a wholesale car dealer in CA, and am setting up as a sole proprietorship. My uncle is going to help me finance the business (mainly help buy the cars) on an on-going basis. Is this allowed? Will I still be able to set it up as a sole proprietorship, or does it have to be a partnership. He will actually not be involved in any way with the business activities, but will just be an investor providing capital. Also, on his end, will the profits he realizes be investment income? Hopefully the questions makes sense, but I guess I’m just trying to figure out how all of this will work. Thanks