Every sale of a security must be either (i) registered with the US Securities and Exchange Commission (the “SEC”) or (ii) exempt from registration. Sell a security without registration or an exemption and you’ll be in big trouble with the SEC. This fundamental rule applies to all kinds of securities offerings, from the sale of Continue reading
Michael Bjorn Huseby
6 Key Provisions in an LLC Operating Agreement
LLCs offer limited liability protection and pass-through taxation, making them the perfect choice for a growing business. Here, you’ll learn about an LLC’s operating agreement — the essential document that sets the rules for your company. The Two Types of LLC Formation Documents Let’s start with the basics. When you form an LLC, you’ll need Continue reading
What Is an Accredited Investor? (And How to Become One)
Accredited investors get exclusive access to many of the most lucrative investments. But what is an accredited investor, and how do you become one? What Is an Accredited Investor? An accredited investor is an individual or entity that’s allowed to participate in certain investments that aren’t registered with the SEC (Securities and Exchange Commission). These Continue reading
3 Common Mistakes When Forming a New Business
If you’ve decided to form a legal entity to operate your new business, you’re already on the right track. However, if you set up your company improperly, you might miss the tax benefits and limited liability protection. Here, you’ll learn three common mistakes new business owners make when forming a legal entity (and how to Continue reading
4 Ways to Ruin Your Corporation’s (or LLC’s) Limited Liability Protection — Piercing the Corporate Veil
The #1 reason to form a legal entity is to limit personal liability for your business’s debts and obligations. If disaster strikes, you might lose your investment in your corporation or LLC. But with limited liability protection, creditors (like lenders or successful plaintiffs in lawsuits) can’t come after your personal assets. That is…unless a court Continue reading
Which Legal Entity Is Best for Real Estate Investors?
Forming a legal entity to hold your real estate investments can protect you from liability, make your business more credible, and pave the way for growth. But what’s the best business type for real estate investments? What Types of Legal Entities Are There? Let’s take a quick tour through some of the most common legal Continue reading
Why Form a Real Estate LLC for Investment Properties?
Creating a real estate LLC to hold your rental property is a great way to protect yourself (and your assets) from liability. Setting up an LLC — a “limited liability company” — doesn’t have to be difficult. Here, you’ll learn why LLCs are a real estate investor’s best friend. Advantages of LLCs for Real Estate Investors Continue reading
How Do “Series A” Startup Financings Work?
If you want to grow your business, you’ll need access to capital. While money from friends and family can help get you off the ground, eventually you’ll want to consider outside investors. Here, we’ll cover the basics of Series A financing, an essential tool that helps startups accomplish their goals. What Is a Series A Continue reading
Where Should I Organize My Business? The Guide to Forming Out-of-State LLCs and Corporations
Are you thinking of starting a new business? Or perhaps you’ve been operating for a while but now realize you should create a legal entity to protect yourself? If you’ve decided to form a corporation or LLC, you’re on the right track. But did you know each state has its own laws governing legal entities? Continue reading