Category: Business Formation

Is Crowdfunding the Best Way to Raise Money for My Startup? (Spoiler Alert: Probably Not)

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 »

Business Owners: What Keeps You Up at Night? [Poll]

Which legal issues give you the biggest headaches? While you’re thinking about your response, here are a handful of recent legal updates on these very topics: Business Formation: Key Tips for Developing Business Plans for Entrepreneurs, Investors & Business Owners – Scott Legal Services, P.C. California’s New LLC Act Adds Confusion and Effects Little Change… Read more »

Entrepreneurs: Raising Money to Fund Your Business? You Should Know…

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 »

Funding Your Startup: You Should Know…

“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 »

Small Businesses Get One More Year to Offer Tax-Free Investments

“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 »

Small Business Taxes: Five Ways to Prepare for Taxmageddon

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 »

JOBS Act Update: SEC Proposes Rule to End Advertising Ban for Stock Offerings

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 »

Considering Crowdfunding For Your Startup? Consider This First…

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 »

SBA Celebrates America’s Small Businesses

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 »

5 Types of Business Insurance Coverage (You’ve Probably Never Considered)

If you’re a regular reader of this blog, you might’ve noticed that lately we’ve been meting out advice in parcels of five. (See for example: 5 Tips for Writing an Effective Employee Handbook, 5 Ways the NLRB Regulates Employer-Employee Relationships, 5 Considerations for Protecting Your Trademark, etc.) Really, there are only two possible paths forward.… Read more »

Startup Advice from a Venture Capitalist [Video]

[Video: Tech Start-Up Legal Issues 6: A VC’s Advice – Bloomberg Law] Interesting Bloomberg Law video interview with Ian Sigalow, a partner at Greycroft Partners LLC. Sigalow qualifies his startup advice as pertaining to the digital sector, however the conversation with Bloomberg’s Spencer Mazyck is of interest to any entrepreneur. Some takeaways – watch the… Read more »

LLC vs Corporation? A Critical Decision During Business Formation [Video]

[Link: Tech Startup Issues: Forming Your Company – Bloomberg Law] “[For employees] the whole ball of wax for these types of companies is: how much equity can I get? Can I get rich? Am I going to feel passionate about working at this company?” Business formation doesn’t happen in a vacuum. There are, as they… Read more »