Systems are at the heart of every successful, scalable company. Systems should be built in layers, starting as early as possible in your company’s growth. New systems will be added and existing systems improved as your company grows. An owner builds systems to make herself redundant—so the company runs without her. Only when the company has systems in place and becomes a machine that works, will it become an asset and not just a job….
Raising capital is not a win, or even a touchdown. It’s a kickoff.
Capital is the lifeblood of a startup company. But for founders without ties to angels and venture capital, raising capital can feel impossible. Many founders turn for help to finders—service providers who help raise capital, for a fee. But what they don’t realize is that finders are acting as securities brokers without proper certification and registration. And by working with a finder, the entrepreneur and her company are exposed to draconian penalties and investor liabilities…
IP is usually the most valuable asset a startup owns. But ownership of IP isn’t always as clear as entrepreneurs would prefer. Here’s a hypothetical situation: A + B start a company named ABCo. They have a great idea for a product, but no cash. So they agree to take stock in ABCo. instead of salary. Then they hire C, a developer, to help build their product. They pay C with stock, too. One…
The fundamental rule of U.S. securities law is that every transaction involving securities must be registered or exempt from registration. Otherwise it’s illegal.
In prior posts, I discussed the basic law of trademarks—an important intellectual-property right for identifying and protecting brands. Copyright is another intellectual-property tool that our Founding Fathers considered so important, they specifically accounted for it in the United States Constitution. Article 1, Section 8, Clause 8 of the U.S. Constitution gives Congress the power: “to promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right…
By electing to have your business taxed as a subchapter S Corporation—commonly called an S Corp—you could save up to 15.3% on your tax bill. The election is available whether your business is a traditional subchapter C Corporation, or a limited liability company. The tax savings from the election come from how each dollar of business income is taxed. Under subchapter C taxation, a corporation pays tax on its own income. Out of what’s left,…
You see trademark and service mark symbols every day. But what do they really mean?
Securities are among the most highly regulated pieces of property. The viability of every modern economy hinges on an efficient securities market. So what exactly is a security?
