Delaware Annual Reports/ Franchise Tax Returns Due Soon
Every domestic or foreign corporation must file an annual report/franchise tax return with the Delaware Secretary of State on or before March 1, 2023. The easiest way to file this…Startup Organization Checklist (Limited Liability Company)
1. Initial Governing Documents (a) Certificate of formation or other organizational filing in the jurisdiction of formation (including appointment of registered agent) (b) Operating agreement 2. Founders’ Initial Equity…Startup Incorporation Checklist (Corporation)
1. Initial Governing Documents (a) Delaware certificate of incorporation (including appointment of registered agent) (b) Bylaws 2. Founders’ Initial Stock Issuances (a) Founder stock restriction or subscription agreements (as…Research Institutions and Startups: Basics of Spinning Out New Companies
Hundreds of billions of dollars are spent on research each year at federal labs, universities and research hospitals. Often this research leads to the creation of valuable intellectual property…What Is a Section 83(b) Election?
What Is a Section 83(b) Election? A Section 83(b) election is a tax election that allows a startup founder to include the fair market value of equity received in…Let the Buyer (of Preferred Stock) Beware
Preferred stock is often the vehicle of choice for investors looking to buy into early stage growth companies. Investment in preferred stock almost always includes a number of advantages…Angel Investing on the Rise:
Why the uptick in angel fund formation in the startup community? Investors are becoming increasingly interested in the opportunities and benefits of launching angel funds. With a growing community…Key Terms in Equity Financings (Institutional)
An equity financing is a transaction in which the startup issues stock in the company to investors. Institutional investors, venture capital funds or other investment funds will invariably ask…Should You Issue Equity, Debt or Convertible Securities?
Broadly speaking, there are three types of financing transactions available to companies: Equity Typically, in these types of financings, preferred equity is issued to investors. Regular participants are venture…