A legal blog on private funds, startups, and venture capital.
A legal blog on private funds, startups, and venture capital.
Recently, I posted a summary of the status of state investment advisor registration requirements for private fund managers in the Northwest including the state of South Dakota. On October 24, 2011, the South Dakota Division of Securities issued a revision…
One of the benefits to using a limited liability company is the flexibility of being able to choose how the entity is taxed. After a new LLC is formed, its owners must decide the method by which they would like…
As I’ve mentioned before, it’s very important for growing companies to comply with securities laws, even during the initial seed and friends and family rounds of financing. The possibility of lawsuits and even fines and other criminal penalties give founders…
One of the things that business people find most objectionable about the legal industry is the high cost of legal services. Bills often exceeds estimates, sometimes by many multiples. However, while many clients think that the size of the legal…
Representative Kevin McCarthy (R-CA and House Majority Whip) recently introduced the Access to Capital for Job Creators Act (H.R. 2940), which would remove the ban on general solicitation for securities offering conducted under Rule 506 of Regulation D. Rule 506…
I am frequently asked by entrepreneurs whether I think a startup should ask potential investors to sign a non-disclosure agreement (NDA). While the answer depends largely on the situation, my view is that in most cases an NDA is unnecessary…
