Call Your First Organizational Meeting Sooner than Later
Running a startup, you have a billion things to do. Don’t forget to add “First Organizational Meeting” to your to-do list. This meeting should take place after the issuance (or effective date) of your certificate of incorporation....
Where to Incorporate
After you have made the decision to incorporate, the next question is “where to incoporate?” You can incorporate in your own state and be considered a domestic corporation, or you can incorporate elsewhere and do business in your own state...
Choosing a Name for Your Business: Stick with It
When choosing a name for a new startup, you should make sure the name is one the public will remember and associate with your business. It can be catchy or dull, short or long, but this name should be permanent, as a large portion of your company’s...
When to Use an Earnout Provision
An earnout is the method of paying the seller of a company based on that company’s future earnings. The earnout will call for additional payments to the seller if the company’s post-sale earnings reach a certain level. The earnout is useful...
Watching Your Client Overleverage an Acquisition
As counsel, is it appropriate to speak up if you believe your client is overleveraging to finance an acquisition? Two factors must be considered to answer this question: (1) Your capacity. You are an attorney (not an I-banker). That law-school corporate...
Include Confidentiality Clause in Letter of Intent
When negotiations need to remain confidential, a letter of intent should obviously include a confidentiality cause. But in the case of startup companies–replete with their fresh and new ideas–a confidentiality clause is a requirement. Information...
Every Situation is Unique When Choosing an Entity
When starting a business, probably the biggest early decision an individual will make is which form of organization is best for his (or her!) business operations. Unfortunately, there is no formula nor book at Barnes & Noble that can magically determine...
