Want to Raise Capital Legally for Your Business? Here’s What You Need to Know

✍️ By Debbie Balfour | WBN News | July 19, 2025 | Click HERE for your FREE Subscription to WBN News and/or to be a Contributor.

Raising capital the wrong way can land you in hot water—even if you mean well.
Entrepreneurs often think that asking friends, family, or private investors for funds is just a handshake away from success. However, under both Canadian and U.S. law, raising capital without legal compliance can trigger fines, lawsuits, or even securities fraud investigations.

Whether you’re starting a business, funding a flip, or launching a new product, you need to understand the rules before taking money.

Here’s what matters most:

1. Know What Counts as a Security

In many cases, promising someone a share of profits or equity, without proper legal documentation, counts as offering a security, which is heavily regulated.

2. Understand Exemptions

You may be able to raise capital under exemptions such as:

• Friends, family, and business associates exemption (Canada)
• Accredited investor or Regulation D rules (U.S.)

3. Have a Clear Investment Agreement

Every capital raise should be backed by a professionally reviewed agreement outlining:

• Terms of repayment or equity
• Risk disclosure
• Exit strategies
• Profit-sharing details

🔹 4. Avoid Public Solicitation Without Registration

Pitching to strangers, posting online, or advertising for money may violate securities law unless you’re registered or exempt.

Whether you’re starting a business, funding a flip, or launching a new product, you need to understand the rules before taking money.

🎥 Watch this Canadian-focused guide that simplifies legal capital-raising without losing ownership.

The good news? You don’t need to be a high-priced lawyer to do this right. Affordable legal support can help review your deal structure, vet your documents, and ensure compliance without Wall Street fees.

Raise capital with clarity and confidence, not confusion and consequences.

Have questions or not sure where to start? I’m here to help—reach out anytime.

Debbie Balfour | Real Estate Investing Success Coach + Podcast Host
📍 Website: https://dbalfour.legalshieldassociate.com/en-ca
📧 Email: Debbie@DebbieBalfour.com
🔗 LinkedIn: Debbie Balfour
▶️ YouTube Channel: youtube.com/@DebbieBalfour

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