If you’re a business owner looking to raise money for your company, you might think about bringing on an investor like a venture capital or private equity firm. If so, you’ll probably encounter legal paperwork as part of the fundraising transaction, including an investment agreement. This might be now or in the future and in return for cash, labor, an…
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In many ways, incentive stock options (ISOs), also known as qualified or statutory stock options, are similar to their non-qualified relatives. They are, however, the only ones that permit the participant to report all profit between the exercise and sale price as capital gains if certain requirements are satisfied. In…
When you’re starting a business, there are many ways to raise money.…
Introduction In the business world, growth is essential for survival. There are…
I. Introduction As a mergers and acquisitions lawyer, I often find that tax considerations play a significant role in M&A transactions. From capital gains tax to corporate income tax, there are a variety of taxes that may be relevant depending on the specific circumstances of the transaction. In this blog…
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I. Introduction Convertible notes are a type of debt financing instrument that can be converted into equity at a later date. They are often used in seed and early-stage funding rounds, as well as in mergers and acquisitions (M&A) transactions as a form of bridge financing. In this blog post,…
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The earnings report of a corporation serves as a public indicator of profitability, financial health, and the authorized assessment of recent general business success. In accordance with U.S. law, all publicly listed corporations must submit quarterly, yearly, and 10-Q and 10-K reports. MAIN LESSONS The Securities and Exchange Commission’s (SEC) website,…
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OPERATING AGREEMENT OF ______________________________________ THIS OPERATING AGREEMENT (“Agreement”) is entered into the _____ day of __________, 20___, by and between the following persons: hereinafter, (“Members” or “Parties”). FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, the Parties covenant, contract and agree as follows:…
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The Financial Crimes Enforcement Network issued a rule to enforce the Corporate Transparency Act’s beneficial ownership reporting requirements. In doing so, the agency recognized the rule’s massive reach, saying that it may apply to as many as 30 million small companies, with at least two million new enterprises needed to…
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Convertible notes, which are sometimes called convertible promissory notes, are short-term debt instruments that can be changed into equity at a set time. Investors give founders notes that can be turned into shares of the company. At some point in the future, like during a future round of fundraising or…
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https://youtu.be/FYoKEu-_bz8 My GPT-3 based AI Lawyer-paralegal does a great job explaining corporate bylaws and gives some drafting tips. Hi! Welcome to Los Angeles! I am an AI Lawyer, powered by a GPT-3 language model that uses deep learning to produce human-like text. When starting a business, one of the first…
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