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When you are selling your business, your lawyer will be one of your most important advisors. However, understanding the basics of the knowledge your lawyer will be applying can help you make better, swifter decisions during that process. ...
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Many of today's startups derive a significant portion of their value (often nearly all of it) from intellectual property created for the business. Who owns this intellectual property? This article sets forth four guidelines, which are...
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When you start your company, how should you value its stock? Does this even matter? Both questions have relatively direct answers--you should value your company's stock cheaply, and it is important to do so because it mitigates the risk...
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Starting your own company can be one of the most psychologically and financially rewarding projects of your life. This article provides advice drawn from the experience of working with a great many of these company founders. The...
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To many non-lawyers, the federal securities laws are a confusing morass of rules which hinder capital raising. However, the penalties for running afoul of these rules are real, and can be harsh. This article focuses on founders who ignore...
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This article continues a series highlighting common mistakes company founders make. This entry in the series focuses on a tempting way to manage legal costs--using a form, rather than a customized, contract. The article first considers...
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What does it mean to own 20% of a company? Or, for that matter, 50%? The answer, as this article explains, is "it depends" (as it is so often in legal questions). What it specifically depends on, in this case, is how you are...
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The initial stages of a new business venture are typically characterized by stretched resources and informality in relationships (the two are related). This article highlights some common mistakes company founders make in choosing and...
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Many practicing attorneys write articles about various legal aspects relevant to the day-to-day (or even strategic) operations of a business. This begs the question: what level of mastery should someone running a business (or an...
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Two common questions aspiring entrepreneurs commonly ask relate to when they should set up a corporation and what type of corporation they should set up when they do so. This article addresses the first of those concerns; the article relates...
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Entrepreneurs are still technically employees of the companies they create. While it may seem like a legal trick to speak of a company founder's compensation from that company, later investors in the firm, for one, will be interested in the...
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One way via which startup lawyers can add value to a new business venture is by identifying legal issues and tradeoffs which can then be addressed strategically, up front, in a way which allows the business to maximize the value of the...
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Startups pose unique tax problems. One such problem focuses on the founder(s)--namely, the stock of a startup will (hopefully) appreciate in economic value rapidly, but much of a founder's wealth will be tied up in that stock. If the...
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This article explains the difference between a "founder's firm" and firms which tend to seek out (and be sought out by) larger law firms. It also explains why hiring a founder's firm results in your business getting the attention of more...
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Many lawyers who specialize in startups counsel their clients to incorporate their new businesses in Delaware. This article explains how this practice came about, but goes on to point out why Delaware incorporation might no longer make...
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This article provides numerous examples of how an experienced startup lawyer can add value to a startup business (or even an idea on the verge of becoming a startup business). It sets forth many considerations relating to the formation of a...
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Understanding lawsuits can help entrepreneurs control legal costs. George Grellas wrote this article to help entrepreneurs do just that; by understanding how lawsuits work, and which activities increase the risk of lawsuits, entrepreneurs can...
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The purpose of this article is to help entrepreneurs understand the costs of creating and maintaining a corporation and the benefits of doing so. To do this, George Grellas explains the procedural safeguards embodied in American corporate...
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In this article, George Grellas outlines some of the basic legal issues appertaining to sales of a small business, from both the buyer's and seller's perspective. He answers common questions regarding the actual purchase (or merger) agreement,...
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One can search the internet for form contracts which cover many types of agreements, but George Grellas advises against using them in most situations. The key, as he explains, is that form contracts aren't tailored to your situation. ...
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George Grellas uses this article to emphasize the importance startups should place in finding a business lawyer experienced at working with startups. Mr. Grellas provides a few examples of areas in which having a good startup lawyer as an...
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Startup businesses are, as George Grellas observes, cash-strapped enterprises. That incentive to save wherever possible leads some to try to do without the services of a business lawyer. In this article, Mr. Grellas answers the commonly...
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George Grellas is often asked to differentiate between a small business and a startup business. In this article, he does exactly that; the key points have to do with the owners' expectations (think exit strategies) and allocation of things like...
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George Grellas describes what his clients can expect from their legal bills.
- Summary by FizzLaw Team
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Venture capital represents one way to infuse capital into a business and drive growth. In this article, George Grellas explains how the venture capitalists' business model works, and also shows one possible way for an entrepreneur to maximize...