Typically, the first people that start-up founders turn
to for financing are their friends and family. Of course, most friends and
family members are not going to worry about valuations, projections, business
strategies. They invest because of their trust and strong personal ties to the
In my previous blog post, I described the federal and
state laws that apply to friends and family rounds of financing. To an
entrepreneur trying to raise only $100,000, this will sound complicated and
even overwhelming, as well as expensive. Preparing extensive disclosure
statements and making the...
Sorry for the paucity of posts...it's the summer and I'm
working under editor deadlines. That said, I thought I'd point out an article in today's WSJ about a pending change in the
Oklahoma corporate law. Oklahoma is amending its corporate law to require
publicly-traded OK firms have...
After my recent post on Oklahoma's bid to change its corporate law to require staggered
boards of all publicly-traded OK corporations , a well-informed reader confirmed
for me why I will always remain a cynic at heart. The state of state
competition for corporate law and incorporations is ......
Previously, I wrote
about the pros and cons of incorporating in Delaware as a small business owner.
My conclusion was that, for most small companies, the disadvantages
outweigh any advantages. In this piece, I'll cover my thoughts on another
state that is frequently pitched as a good place...
Carney and Shepard have a new paper, Lawyers, Ignorance, and the Dominance of Delaware Corporate Law ,
which seems intuitively correct. One reason why Delaware has been able to
maitain its preeminent position with respect to the corporate law is that it's
the only law most lawyers who take companies...
by Sidney Goldstein
In this EIA we will examine
various issues that should be fully explained by the professional advisor to
her client, before selecting the limited liability company (LLC) as the form of
business entity to be adopted. Since each state has adopted its own version of
a Limited Liability...
One of the commonly asked questions that entrepreneurs
ask their attorneys when forming a company is where to incorporate it. Most
frequently, companies choose between incorporating in their home state and
registering in Delaware.
Delaware is chosen by many companies because of its well-developed...
New York has long been recognized as having some of the strictest laws on the books when it comes to what is known as the “professional service corporation” (a “PC” for short), a specialized kind of business entity that must be formed by individuals providing professional services...