On November 23, 2022, The Securities and Exchange Commission (“SEC”) released its Strategic Plan for fiscal years 2022 through 2026, detailing its mission, vision, values, and goals moving forward through the next four years. Three main goals guide the SEC’s plan: (1) protecting the investing public against fraud, manipulation, and misconduct; (2) developing and implementing…
Category Archives: Business Formation
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Valuation
Common models used to value a company, how these apply to startups, stock valuation, stock option valuation, and comparisons with US GAAP accounting valuation. Common Company Valuation Methods Market Capitalization Most people are familiar with terms like “market cap” if they have any interest in publicly traded stocks. Market capitalization is a method that can…
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Capitalization, Cap Table, & Initial Accounting
This article will serve as an explanation of some of the basics around the formation and structure of a corporation. I am using examples for a typical corporation, but many of the concepts can apply to LLCs and the issuance of units to represent membership interests instead of stock. I) Capitalization People need to have…
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Guide to Business Entities
Businesses can be categorized by law in several manners. And these classifications matter when it comes to determining how a business is recognized, how it’s taxed, and the personal liability, or lack thereof, of the business owners. Knowing how their business is set up and how it is categorized under the law is crucial for…
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What Exactly Is A PPM (Private Placement Memorandum) And Why Do I Need One To Raise Money?
This article goes over the basic information about what a PPM is, when and why you may need one. This information is being provided as a general overview and a basic education of the common terms and federal securities laws involved with a PPM. Each state has its own securities laws and the discussion in…
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The Three Keys To A Great Law Firm
After over 15 years of practicing law and being fortunate to own my own law firm for most of that time, I began to ponder what clients really look for in selecting a law firm. Last year brought businesses many challenges that we never would have imagined we would face when 2020 started. With these…
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Important Considerations When Choosing An Entity Structure
Why do I need an entity? The primary reason clients set up an entity is to separate the liability of the business from the individual owners. We represent many clients who need assistance in choosing the right entity structure for their business. What’s the best type of entity for my business? In short, it depends….
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What do my investors expect from a fundraise?
Our firm is often engaged by real estate investors and entrepreneurs seeking to raise capital for their projects or companies. A company may raise capital as either debt or equity. To raise capital as equity, a Company must undertake an offering of Securities. The definition of Securities in the Securities Act of 1933 (the “Securities…