CAN A SOLE PROP. (STARTING SMALL) BE A HOLDING COMPANY, AND IF SO, HOW CAN IT POSSIBLY ATTRACT INVESTORS?

I’ve asked this prior to in the “Small Business” section; however, I would similar to to embrace some-more than the single answer.
I’m an American adult vital in the United States, as well as I would similar to to begin the business, preferably (due to my singular personal funds) the solitary proprietorship, which would action as the land association for (foreign) region-specific companies. The company’s solitary income will come from investment gains as well as dividends. For the time being as well as in to the foreseeable future, I will be the company’s usually employee. Considering these contribution (mainly my singular finance management as well as starting as the solitary prop), what would my options be for attracting collateral from meddlesome parties? All I can consider of would be particular contracts, though certainly there contingency be alternative options. Any help, thoughts, ideas, or recommendation would be severely appreciated. Thanks!

{ 2 comments… read them below or add one }

rickwilliams86 May 12, 2010 at 1:46 am

First off you would probably need to be an LLC to offer yourself and the investors some protection.
And you would need a business plan to show any potential investor or they won’t even consider you.
You could sit down and talk to SCORE and discuss this for free and get some knowledge of what to expect when talking to investors

Serge M May 12, 2010 at 1:53 am

A sole proprietorship does not attract investors, because as soon as someone invests they become an owner and you are no longer a sole proprietor.

I think what you mean is that you want to attract clients. With a limited amount of capital that you want to invest, you want your clients to give you money to invest for them in foreign companies. If you are successful and make money for them you will have income from your services. If you are not successful and lose their money, you have taken no risk and they are out of luck. In other words, you want to operate a small mutual fund without risking any capital of your own.

First of all, you may have to be licensed as an investment advisor or a broker. Secondly, you may need a specific amount of capital to be allowed to seek money from clients. And thirdly, without a history of successful investing in foreign businesses and managing investment portfolios, you may have difficulty finding victims .. oops, I mean clients to risk their money for the purpose of making you rich. Best of luck.

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