The Angel Tax and Small Businesses
Recently, both terms of Angel Tax and Angel Investor have become more mainstream and popular. If you don’t have anything to do with business, this may be the first time you’re hearing these terms. This article will go over what an angel investor is, what the angel tax is, and what this means for small businesses and their owners.
What is an Angel Investor?
According to Investopedia.com, an angel investor is a person or financial entity that invests in either small businesses or entrepreneurs. These investors are usually the small business owner’s family or friends. The money can either be used to start a business or help a business through a rough financial spot.
The angel investor usually trades the monetary investment for a stake in the business. An angel investor can also invest in a business or startup through a crowdfunding platform, or through an angel investment network.