Excited about the arrival of crowdfunding? You shouldn’t be, writes Brian Korn of law firm Pepper Hamilton: “When compared to other forms of private placements, crowdfunding is not a feasible option.” He explains: “Crowdfunding began with the concept of small enterprises engaging in online capital-raising through social media and raising funds from people they did… Read more »
Raising capital for your business isn’t your full-time job. But it’s one of the most important… Here are five recent updates that can help you do it right, from lawyers on JD Supra: Finders May Pose Risk in Private Capital Raising (Venable LLP): “Entrepreneurs, company executives, and private equity fund sponsors with a growing enterprise,… Read more »
“You’ve even formed a company to develop your concept into a working technology. Now what? You’ll need money to support yourself, recruit a team, rent space, obtain equipment, and build your technology.” (Ervin Cohen & Jessup) Entrepreneurs know that a great business idea doesn’t get very far without funding. But what to know about funding… Read more »
“Among the taxpayer-favorable aspects of the American Taxpayer Relief Act of 2012, the 100 percent exclusion from gross income of gain on the sale of Qualified Small Business Stock (QSBS), provided for in section 1202 of the Internal Revenue Code, was extended for an additional year. Therefore, gain from the sale of QSBS purchased during… Read more »
The end of year is coming, and – if our representatives in Washington continue their shenanigans and political posturing at the edge of the fiscal cliff – it will bring major changes to small business tax laws. As a business owner what can you to protect your interests? Here are five considerations: 1. Convert your… Read more »
In late August, the Securities and Exchange Commission proposed a new rule that would lift the long-standing ban on advertising private securities offerings. The rule, the first of a number of planned regulatory changes designed to help small and emerging growth companies raise capital as mandated by the JOBS Act, is open to public comment… Read more »
“You only sell your business once. [But] while every transfer of business ownership is unique … there is a common process that is used for the sale of most small businesses.” (How to Sell Your Business) Here’s a quick look at three essential elements of that “common process” Barbara Taylor refers to, above, with regard… Read more »
New regulations requiring 401(k) plan service providers to disclose fees to plan sponsors went into effect on July 1, 2012. The burden now shifts to retirement plan sponsors, who are required both to: 1. ensure that they’ve actually received the information they need, and 2. evaluate the fees to determine whether or not they are… Read more »
Signed into law earlier this year, the Jumpstart Our Business Startups (JOBS) Act promises to make capital raising easier for small and emerging growth businesses by loosening important regulatory restrictions on private and public equity offerings. The “crowdfunding exemption” (one of the most anticipated changes in the law) will allow businesses to raise up to… Read more »
Mobile payments are expected to top $170 billion worldwide this year, according to a Gartner study published earlier this week. Three recent updates take a look at issues facing merchants who are considering – and in many cases already implementing – systems for accepting payments via smartphone or other mobile devices. The first discusses a… Read more »
It’s National Small Business Week, and the Small Business Administration is throwing a party. Guess what: you don’t have to be in DC to join the festivities; follow along via the SBA’s live webcast. We’re joining the National Small Business Week party, too. Thought we’d bring along this tasty little roundup of advisories regarding SBA… Read more »
“The JOBS Act removes the prohibition on general solicitation and advertising in offerings made under Rule 506 solely to accredited investors. Recall that Rule 506 is a safe harbor exemption from registration that most startups use to raise capital. Under Rule 506, a startup can solicit accredited investors and there is no limit to the… Read more »
Featured video of the day, from law firm Allen Matkins: [link: Roadmap to Maximizing the Value of Your Private Company] “How a company is viewed from the outside is crucial for financing, attracting investors or selling the company. Owners of private companies are often disappointed at the value their company is assigned by potential buyers.… Read more »
For most entrepreneurs and business owners, selling the company they’ve built and run is a once-in-a-lifetime experience. And a difficult one: the stakes are high, the decisions are unfamiliar, and the transaction itself can be quite complex. To start off right, ask yourself these five questions as you consider the sale of your business: 1.What… Read more »
The Small Business Jobs Act and the Tax Relief Act (both of 2010) might be more than a year old, but they can still help small business owners save money on their 2011 taxes. For your reference, here are eight changes from those laws that you should consider when preparing and filing your business return:… Read more »
