Starting on Online Business with Investor

[steadysystems]

What is the name of your state (only U.S. law)? California

This is totally new territory for me. Here is the scenario: I have a new online business venture and have an investor who is willing to give me $10,000 to cover the business budget. He asked me to file the business and sell him shares. I will paste email from him:

So, you are going to set up corporation, right?
The Corporation will offer shares to shareholders.
As soon as your company is set up, I will buy 10,000 dollars worth. I need to know how much shares is the company authorized to issue. From that, we can negotiate how much shares the 10,000 is worth.


So my questions are:

1. Do I file a LLC or CORP?
2. What is the cost?
3. If we are splitting the profits, what type of partnership is this?

Thanks!

 

[Proserpina]

You might do well to consult an attorney; these things can go wrong very easily.

You want to CYA.

 

[steadysystems]

I don't have the money to consult an attorney, that's why I am on a free advice forum?

 

[MrJenkins]

I don't have the money to consult an attorney, that's why I am on a free advice forum?

surely, you can spare a few hundred dollars in order to make sure everything is in order.

why would you listen solely on freeadvice when this will probably be your only source of income/pride/etc.