Collateral serves as insurance for secured creditors’ investments and while it can offer prudent financial security, that is only true if creditors abide by all legal guidelines. This is why it’s wise to hire a…
Do I Need a PPM When Investing? A PPM, or private placement memorandum, is a useful marketing tool that informs and sparks up interest, but it also helps investors comply with SEC law. A PPM…
California Employee Meal and Break Requirements A significant portion of civil action and Labor Commissioner disputes between employees and employers in California are caused by employers’ failure to comply with the rules regarding required breaks…
Raising Capital with Regulation CF The methods used by startups to obtain funding have come a very long way due to technological advances, so much so that federal securities laws have evolved to ensure these…
Should I Offer a Stock Option Pool? An ever-more common option for dividing equity for startups is a stock option pool. Equity compensation is a fairly common incentive that business owners use to pull in…
The Worst Shareholder Structure Dividing shares equally among founders may seem like the most straightforward option when forming a new business, but there are numerous risks to consider. By working with an experienced attorney, new…
Capitalizing on a new company can be a challenging process. The founders may lose control of their intellectual property if too much equity is distributed. On the other hand, if insufficient funding is secured, there’s…
Should Investors Get Board Seats? The success or failure of a new startup depends heavily on its board of directors. Therefore, entrepreneurs must be selective about giving board seats to investors. Each board member has…
What Is A UCC Filing? Collateral is used by creditors to safeguard their investments. Financial security can be provided through collateral, but only if creditors adhere to all legal restrictions. If not, a secured creditor…
