When issuing stock in a company you must consider not only the investor’s state’s laws but also your own. On top of this, there are federal laws to abide by. Understanding these laws as a novice is nearly impossible. For this reason, we recommend hiring an attorney who’s familiar with security laws to look over who the investor is, what kind of investment is being made, and what kind of information has been given to that investor.  Before taking money from an investor, have an attorney look into them. Lastly, make sure to do the appropriate violence of the secretary of state for the state in which you are incorporated.