When you sell someone an interest in your career, like a profit participation, you are selling a security. Federal securities laws and state "blue sky" laws, designed to protect us all from investment fraud can be quite onerous and even nonsensical when applied to the relatively small investments we are talking about. The smaller the number of investors, the smaller the amount of money involved, the more personal your contacts, etc. the more likely you are to be exempt from the many disclosure, registration, and other requirements of these laws, but that is beyond the scope of this article.
Posted on: Fri, 12 Jul 2013 03:34:43 +0000