In our article on SAFEs vs Convertible Notes, we referenced the “friends and family” rounds as the most common way founders first raise money. At this stage, individuals are primarily writing checks because they love and trust you, and little to do with your business idea or any expectation of actually making money. Every penny from this precious purse must be spent wisely to build the business.
Since the inception of Massachusetts’ income tax, the Commonwealth’s constitution has provided that tax could only be assessed at a flat rate across all income levels–currently 5%. When Massachusetts voters went to the polls on Tuesday, November 8, they were asked for the sixth time in the last 107 years whether this constitutional provision should be amended to allow for graduated income tax rates. For the first time, voters–narrowly–said yes.
Introduction Following Russia’s invasion of Ukraine, the United States, United Kingdom, and the European Union implemented a series of broad sanctions on Russia and Belarus, as well as certain entities controlled by and individuals closely associated with those governments. Most of the sanctions are similar in scope and nature, yet differences exist across nations and […]
The question of what entity type to choose when starting a new business can be overwhelming and it is important to choose the one that best fits your business needs. While there is no one-size-fits-all approach, here are some things you should consider before making your decision. Common Business Entity Types The most common types […]
One of the challenges of launching and growing a tech startup is procuring the necessary legal advice and support with a very limited legal budget, especially in the early days when the company is pre-revenue. Here are a few pointers on how to get the most out of your budget for legal services. Select The […]
What is it and how is it different from Common Stock? Introduction: Where’s the Beef? In representing early-stage companies, I am often asked what and why there are different types of stock for a given company. After all, isn’t a share of stock, a share of stock? The answer to this question generally depends upon […]
Tell Us About Your Journey with Silverside Following her undergraduate studies at Duke University, Sarah Baker returned home to live in Boston for a few years. With her interest in international development, Sarah moved to China and spent the next five years overseeing microfinance companies, with her focus on researching civil-military interactions in Afghanistan. Sarah […]
Imagine selling stock in a corporation for several million dollars and paying exactly $0 of federal income tax. Sound too good to be true? While such an outcome seems like fantasy or even an illicit tax scheme, it is completely legal and even encouraged under Internal Revenue Code Section 1202. Entrepreneurs and other investors who hold stock […]
Tell Us About the Archer Roose Journey Marian Leitner has always loved stories and has always described herself, first and foremost, as a storyteller. Wine, to Marian, is just that – a story. Humans have been fermenting fruit for nearly as long as we’ve been gathering it and. As Marian shared, “There’s nothing more human […]
The Nested Bean Journey Manasi Gangan started her journey in a corporate environment, on track to become a software developer and later a product manager. Despite her enjoyment in the field, something was still missing… which she defined as her desire for making a wider impact. “I wanted to create something that was of meaning, […]
Last week I met with an entrepreneur whose young company has a validated business model and revenue model and a group of angels ready to invest. She handed me a sheet of paper with the names of three accounting firms on it. “Which one of these firms should I use?” she asked. My answer may surprise you.
For many companies, especially those offering a SaaS platform, the Terms of Use (or Terms and Conditions of Service) and Privacy Policy serve as the primary agreements between the company and its end users, whether an end user’s access is provided through a customer’s corporate enterprise account or an individual account. So it is vital to know the basics concepts of these agreements and appreciate the role they play for your company.
When founders are seeking their first financing following efforts to self-fund or “bootstrap,” they typically turn to the “friends and family” round, which ideally serves as a bridge to a subsequent round of funding from institutional investors like angels or venture capitalists.
You’ve got a potential buyer, and they suggest that you structure the deal as an asset sale. Should you care?
Your company may have one, two, twelve, or a thousand shareholders. No matter the number, shareholders dictate the direction of the company by majority consensus. When things are going well, everyone benefits, but what happens when disagreements emerge? This article will identify common causes of shareholder disputes, offer potential solutions, and propose preventative measures.