Part 1 covered the strategic and operational aspects of business planning. However, the legal foundation of an entrepreneur’s business also requires meaningful attention. Overlooking these elements can result in costly problems that threaten a business’s survival. A separate post will deal with the use of AI in creating business plans. Intellectual Property Protection Trademarks: Entrepreneurs should … Read more
Part 1 focuses on why an entrepreneur needs a business plan and what makes one effective. Part 2 will deal with legal considerations and other essential business matters. Why Your Business Plan Matters More Than You Think Many new entrepreneurs view business plans as academic exercises or hurdles to jump through for investors. This mindset … Read more
Sooner or later a startup lawyer will hear the suggestion that payment be postponed or waived in exchange for equity. What is the lawyer to do when the client cannot (or would rather not) pay and offers stock instead? On its face, taking equity looks like a practical solution. The client preserves cash, the lawyer … Read more
A variant of this post was published in Deal Points, the Newsletter of the Mergers and Acquisitions Committtee of the American Bar Association. In mergers and acquisitions, contracts form the backbone of transactions, governing crucial aspects such as liabilities, obligations, warranties and intellectual property rights. The thorough analysis of these contracts is a critical component … Read more
The Corporate Transparency Act (CTA) is sort of gone! No need to report now! ANOTHER UPDATE: On March 2, 2025, the U.S. Treasury Department announced it will suspend enforcement of the Corporate Transparency Act against U.S. citizens and domestic reporting companies. The key points of the announcement include: The Treasury Department stated this decision was … Read more
Every time I blink, the need and timing to comply with the CTA changes. Check with your lawyer to make sure your compliance, if necessary, is timely. BUT WAIT!!! As it stands now, businesses subject to the CTA’s requirements will not be required to submit beneficial ownership reports until further court rulings are made. This … Read more
In a previous post, I explored the pivotal role angel investors play in the startup ecosystem. These early backers provide critical funding and mentorship to fledgling companies while navigating a complex legal and regulatory environment. Venture capital, though building on similar foundations, operates on a much larger scale, with its own distinct set of legal … Read more
On December 3, 2024, the Eastern District of Texas issued a preliminary injunction against the Corporate Transparency Act (CTA), addressing several legal and constitutional considerations. The ruling centers on three primary aspects of the CTA, legislative scope, corporate disclosure requirements and potential constitutional implications. The court examined the act’s provisions through the lens of established … Read more
While the do-it-yourself approach to forming a limited liability company (LLC) can be tempting for cost-conscious entrepreneurs, it’s important to recognize that this strategy may be penny-wise but pound-foolish. The nuances and details involved in forming an LLC can be complex and missing crucial elements may lead to complications down the road. This guide aims … Read more
Navigating the complexities of an Initial Public Offering (IPO) requires meticulous attention to a myriad of provisions, each carrying significant implications for the company’s future as a public entity. The negotiation of these key provisions can be a delicate balancing act, involving the interests of the company, existing shareholders, underwriters and potential investors. Let’s delve … Read more
The journey of a company from private to public ownership through an Initial Public Offering (IPO) is a transformative process that marks a significant milestone in its evolution. This transition, often viewed as a coming-of-age moment in the business world, opens doors to vast pools of capital and heightened prestige, while simultaneously ushering in new … Read more
When it comes to startups, maintaining momentum is crucial. However, there are times when a company’s growth outpaces its available capital, creating a financial gap between major funding rounds. This is where bridge funding comes into play. It’s a vital lifeline that can keep a startup afloat and thriving during critical transition periods. Bridge funding, … Read more