LLCs are great for investors and small businesses because of their flexibility. One of the first steps to customizing your LLC is to determine whether you want it to be member-managed or manager-managed. Here, we’ll discuss the difference (and which management structure is best for your business). Option 1: Member-Managed LLC An LLC’s owners are Continue reading
Startups
How to Fix Your Business If You Haven’t Been Keeping Proper Records
Keeping careful records is essential to a well-run business. In fact, if your company is a disorganized mess that ignores corporate formalities, your future could be in jeopardy. Here, you’ll learn how to get things back on track if you haven’t been documenting your business as you should. What Happens If You Don’t Follow Corporate Continue reading
Guide to Resolutions for Corporations and LLCs (With Examples)
A corporate resolution is a written document that memorializes a business’s decisions. Without resolutions, third parties (like banks) might not do business with your corporation or LLC. Plus, carefully keeping resolutions helps protect business owners from personal liability. Who Signs Corporate Resolutions? Corporate resolutions are signed by the key decision-makers in a corporation or LLC. Continue reading
What Is a SAFE (Simple Agreement for Future Equity) in Startup Financing?
New companies looking to raise money have several options. Issuances of common stock, preferred stock, and convertible notes are all on the table. Here, we talk about one of the newcomers to the game of startup finance — the Simple Agreement for Future Equity (SAFE). Mom…Where Do SAFEs Come From? The SAFE was invented in 2013 Continue reading
The Difference Between Rule 506(b) and Rule 506(c) Private Placements
Are you thinking of raising money for your startup, investment fund, or real estate syndication? If so, be sure to remember the golden rule of securities law: every sale of securities must be (i) registered with the SEC or (ii) exempt from registration. Here, we’ll discuss Rule 506(b) and Rule 506(c) — two of the Continue reading
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
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
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