Choosing the correct entity for your new company will be one of the most critical business decisions you will make. Should your business be run as a corporation, an LLC, a partnership or something else? What are the differences, and which one will work best for you?
Read MoreWhether you start your business on a shoestring or have millions in venture capital behind you, one thing is certain. The success of your business depends on you and the actions you take, and sometimes the actions you fail to take. Below are the seven most common legal mistakes made by startups and how to avoid them.
Read MoreSo you have formed your business entity and found some funding. Now, you’re ready to hire your first employee. Before you leap into becoming an employer, however, there are certain requirements you should be aware of in order to comply with the law.
Read MoreWhen starting your business, you’ll want to ensure you have adequate funding to help pay for any expenditures. By understanding what type of funding is available to you and the potential advantages, you will be able to make the best choice for your business. Funding options that you may want to consider include loans or investments from friends and family, bank loans, angel investors, and venture capital funds.
Read MoreBefore you register your business, it’s important to consider the best entity type to register. Choosing the appropriate business entity type is important because it can impact how your business is run. You need to consider the purpose of your business and the amount of control you would like to have. Your choice can also affect how much you pay in taxes, the forms you are required to file, your personal liability, and your ability to raise money. Although you may be able to convert to a different business structure later, it is important to carefully consider which structure is appropriate when starting your business because there may be some restrictions associated with changing entity types. The most common types of business entities are sole proprietorships, partnerships, limited liability companies (LLCs), corporations, and cooperatives.
Read MoreWhat is an employee stock option incentive plan, and why does my startup need one?
There is a misconception that exists among the startup community that employee stock option incentive plans and agreements are only available to midsize or larger companies.The truth is that these plans are tools that the most creative startups are using at an increasing rate to incentivize and retain their founders and key employees, usually as a substitute for or supplement to normal income or bonus structures.
Read MoreThere has been much focus over the past decade on the tech startup world; how to obtain financing, how to scale and how to make a quick and profitable exit. But what about those business owners who are in it for the long haul? What should they be thinking about over the decades of blood, sweat and tears that they put into building their businesses? Read on for tips for a successful exit.
Read MoreNow that we are (hopefully) seeing the beginning of the end for the coronavirus pandemic, many founders are turning their attention back to the crucial fundraising goals they set at the beginning of 2020. For those that want an “easy button” to startup fundraising, the Simple Agreement for Future Equity (“SAFE”) may be the answer.
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