Legal financial contributions

[cafehopeful]

I am looking to start a cafe business in Michigan, but funding is an issue. I am trying to find out what legality issues we may run into if we were to receive donations (not investments) to help fund the start up of the business. Any help would be appreciated...

 

[jharris352]

If you treat "donations" like "investments" it really doesn't matter what you call them they are investments. However, if you are starting a small business and not raising that much capital, you can do joint ventures, or partners and not worry about selling stock (which requires a prospectus and some legal work). Does that answer your question?