Investing in Someone Else's Business - Do You Need a Lawyer?

Investing in a business can exponentially increase your financial worth—or ruin it. And if you are like many residents of Monroe, LA, you have a nest egg that you must closely guard. Taking a chance with your money requires due diligence, including at least one discussion with a business planning lawyer.

Investing in Someone Else's Business - Do You Need a Lawyer? | Niswanger Law in West Monroe, LA. Image of a lawyer recommending a client sign a legal business agreement.

Why Consult a Business Lawyer Before Investing

Though it is tempting to move forward in investing without consulting with an attorney, doing so can put your hard-earned money at risk. 

In some cases, a brief consultation can make the difference between losing one’s life savings and safeguarding your money for better opportunities in the future. Thus, the little you spend to get a business lawyer’s guidance and advice can result in exponentially more savings or gains.

The Benefits of Consulting a Business Lawyer

By looking at the investment opportunity with the assistance of an experienced business lawyer, you’ll benefit from a new and unbiased perspective. Your attorney’s business analysis—including the legal complications—can prove valuable.

At Niswanger Law, our business planning attorneys in Monroe, LA have helped entrepreneurs and investors review opportunities in-depth. We help determine whether those opportunities will likely result in a profit or loss and the timeliness of that loss or gain.

Our business attorneys also identify potential legal pitfalls in new business opportunities. From reviewing the company’s current litigation to potential legal issues that might arise down the line, our insight is invaluable. It merely takes one lawsuit to cost a business owner or investor tens of thousands of dollars or possibly even shudder the enterprise for good.

Some Questions to Ask a Business Lawyer When Investing

The most important question to ask is what type of legal complications might arise as a result of the investment or purchase of the enterprise. It is also in your interest to inquire how current litigation against the company might compromise your financial investment. There is even the potential for legal liability to arise soon after investing in a business.

Also, ask about potential problems with the company in the context of the letter of the law. Business lawyers study and understand business law dynamics that change each year. So, listen closely as your attorney highlights the potential perils of the opportunity.

It is also in your interest to ask your attorney about the following:

  • The potential financial loss if the investment sours
  • The level of personal protection available if the business is sued
  • The positives and negatives of the investment in both the short and long terms


When in doubt, it’s better to err by asking too many questions instead of too few. Remember that your hard-earned money is at risk when investing in someone else’s business, even if it seems like a can’t-miss opportunity.

Unsure About Investing & Business Planning? Schedule a Consultation With Niswanger Law

Our business planning lawyers are a call away. If you are considering investing in another person’s business, launching your own, or buying another business, you’ll benefit from having an experienced business lawyer in your corner.

Contact Niswanger Law today. Give us a call at (318) 953-0071 or fill out his contact form. We are located at 3814 Cypress Street, West Monroe, LA 71291.