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Articles Posted in Business Transactions

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Should Founder’s Stock be Subject to Vesting Before a Venture Financing?

Start-ups are popping up all around the country. As our society continues its shift towards a strong, tech-driven economy, more and more individuals are looking to find the “next big thing,” especially in the tech industry. Entrepreneurs are more and more motivated by success stories such as those of Uber,…

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What State Should I Incorporate In?

When a person is considering starting a business, one of the first questions that often arises is which state to incorporate in. Many people simply choose the state in which they live and plan to do business, as it often seems to be the easiest and simply makes sense. In…

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How Many Shares Should be Authorized in a Certificate of Incorporation?

Articles of Incorporation are an essential requirement of forming a California startup corporation. This document is filed with the California Secretary of State’s office and establishes the corporation as a legal entity as well as certain key facts about the corporation, including the name of the corporation, its principal place of business,…

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What is an 83(b) Election? How can an 83(b) Election Benefit Me or My Employees?

More and more startups are issuing stock and other forms of equity as a form of compensation for work, especially in the early stages of a venture. This arrangement allows a business to recruit talent that they otherwise wouldn’t be able to afford and, if the company is successful, can…

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What is the Difference between an Incentive Stock Option (ISO) and a Non-Qualified Stock Option (NSO)?

Many companies issue stock options as a form of compensation or as an incentive to various parties. At their most basic, stock options are the right of a party to buy company stock at a predetermined price for a period of time. Generally, the agreed-upon price is similar to the market…

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Who Owns Intellectual Property Developed Under A Government Contract?

Federal and state government contracts can be a lucrative source of business for private companies in a variety of industries, including defense contractors, medical researchers, software developers, and other companies that operate in the technology sector. In many cases, government initiatives drive innovation, and many items and inventions that we…

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How Can I Start a United States Business as a Non-Resident Foreign National?

With the United States having an extraordinarily robust economy and the highest level of consumer spending in the world, many non-U.S. resident foreign nationals are justifiably interested in starting a business in the United States, but are not sure whether it is possible or where to begin. Fortunately, it certainly…

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What Legal Steps are Necessary when Starting a New Business?

Every new business venture starts as an idea – where many entrepreneurs go off-course is in the implementation and execution of that idea. One of the most important aspects of starting a new business is establishing the business in a way that is compliance with the relevant rules and regulations…

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What is the Difference between Software Licensing and Software as a Service (SaaS)

According to IT research and advisory firm Gartner, worldwide software revenue totaled $407.3 billion in 2013. More and more players are trying to break into the software market, and the ease of delivery through the Internet has significantly lowered the barrier for entry for many smaller companies. Two of the…

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Should I have Employee Handbooks?

When drafted properly, employee handbooks encourage open communication in the workplace, set employee expectations, and shield businesses from the financial burden of legal liability. Here are 3 reasons why your business should have an employee handbook. 3 Reasons Why Your Company Should Have an Employee Handbook Establish Your Company’s Character…

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