What a Startup Needs to Know about Convertible notes and SAFE notes?

by Staff Attorney | Apr 18, 2023 | Business Transactions, Corporation & CA LLC

This article introduces Convertible notes and SAFE notes and explains the differences between them. Founders have two primary options for receiving seed investments into their Startups: Convertible Notes and SAFE notes. Convertible Note A Convertible Note is a type of...

What is a Form D? Why do I need a Form D?

by Staff Attorney | Apr 7, 2023 | Corporation & CA LLC, Business Transactions

Form D is a form used by startups to raise capital while remaining compliant with securities laws. The SEC filing form is used to file a notice of an exempt offering of securities under Regulation D of the U.S. Securities and Exchange Commission. The Commission’s...

Series A Financing: What It Is and How to Secure It?

by Staff Attorney | Mar 8, 2023 | Business Transactions, Corporation & CA LLC

Series A financing is a level of investment in a startup subsequent to initial seed capital, normally drawing investments in the millions if not tens of millions of dollars. A startup will generally attract this financing level only after it has demonstrated a viable...

Capitalization Tables, Do You Know Who Owns Your Company?

by Staff Attorney | Feb 26, 2023 | Business Transactions, Corporation & CA LLC

Capitalization Tables or “Cap Tables” is a spreadsheet that documents what individuals or entities own a company. A Cap Table is therefore a comprehensive document that accounts for all of the securities or shares of a company including but not limited to common...

What is the Qualified Small Business Stock Exclusion?

by Staff Attorney | Feb 20, 2023 | Business Transactions, Corporation & CA LLC

Internal Revenue Code (I.R.C.) Section 1202 provides for the enactment of the Qualified Small Business Stock (QSBS) exclusion. In summary, the exclusion allows an eligible taxpayer to potentially exclude up to 100% of the eligible gain realized from the sale of...

Don’t Fear, Your Delaware’s Annual Requirements are here

by Business Lawyer | Feb 6, 2023 | Corporation & CA LLC

If your business is a Delaware corporation, your company must follow certain annual compliance requirements to maintain its corporate status and stay in good standing with the state. These requirements include: 1- Filing an Annual Report Every year, all Delaware...