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Is it necessary to be incorporated before getting angel investment?

It’s not necessary, no. But, in the world of business doing what is necessary and what is best is not always in alignment. While there is nothing that says that you are required to be incorporated before getting an angel investment, it may be rather difficult to get one without it. The investor that is interested may very be loyal to you, but there is nothing set in stone to say that they will. Putting your entire faith into one potential investment may or may not work out for you. It’s best to set yourself up well to gain interest from numerous investors so that you can choose the one that is best for your business.

Think of it this way—no investor is going to see an incorporated status as a negative thing, but there are some who may. You could potentially lose out on interest without it.

I understand that your funds are limited (as is the case for many startups), but there are still affordable legal options for you. LawTrades specializes in connecting clients with top-notch attorneys. We offer free consultations, affordable rates, and flexible payment options. We believe that legal services should be cost-effective, especially for businesses that are just starting out. Our services have helped over 1000 startups and entrepreneurs and we would be happy to add you to the list of success stories. Contact us today for a free consultation.


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