I am starting a record label and looking to attract investors. How does incorporating or forming an LLC help me raise investment funds?
Our customers often raise investment funds for use in the conduct of their business by forming a corporation or an LLC and issuing interests in such entities to investors in exchange for money or property. Customers who form a corporation to conduct their business often issue shares of stock of the corporation to investors in exchange for money or property and the investors become shareholders in the corporation. Customers who form an LLC to conduct their business often issue membership interests in the LLC to investors in exchange for money or property and the investors become members of the LLC. By becoming a shareholder of a corporation or member of an LLC, the investors may be entitled to certain rights (e.g., voting rights and the right to share in the profits and distributions of the company) and have certain responsibilities with respect to the corporation or the LLC. Due to the significant issues associated with forming an entity and issuing interests in such entity to investor
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