Here's a business rule................Investors are good. Unless you are dealing with the mob or something and trust your partnerships, take the cash!!! If you are broke enough when starting a business to need money it obviously because it isn't coming from anywhere else.

Investors are generally a good thing, regardless of where they are based. However, there are certain legal and tax considerations to keep in mind if you plan to seek international investment. [Note: My comments apply to US-based businesses seeking non-US investment.]

First of all, you cannot issue shares to foreign investors if your company is an S Corporation. This is one of the requirements of S Corps. You would have to form an LLC or a C Corporation. Typically, investors want preferred stock, which would require a C Corporation.

In addition, if a foreign investor holds stock in a company, there are special tax withholding requirements that the business must consider when making payments to the foreign investor. These include dividend withholding requirements and other tax filings.

Hope that helps. Let me know if you have more questions.

I'm available to provide angel funding or as a partner for individuals in the Philippines and India possibly, but you have to be very very good at what you do, Internet startups only.

Contact me at my site Timemanagement.com