Form a Company

Post image for Basic Training: Issuing Shares to Investors

Investors can be a real boon to your business, but no question–they’ll want a piece of the action.  What’s involved in issuing shares to them? Q: We currently have a market cap of $200,000 (2,000 shares X $100 per share). We were wondering how to authorize new shares to new investors. A: It’s not unusual for companies […]

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Post image for Basic Training: How to Divide Profits in an LLC

When you’re in business by yourself, the math is easy.  But when you have multiple owners, how should you share the spoils?  That’s the nature of this week’s basic training post. Q: How should I divide profits in an LLC? A: Especially in an LLC, you have many options for how to divide your profits. There’s no hard-and-fast […]

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A DBA – or Doing Business As name – will keep your business in good legal standing, so it’s a good idea to file a DBA as soon as possible after launching your company. The DBA or Fictitious Business Name designation was created as a form of consumer protection, to prevent business owners from operating […]

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Should I operate business as a sole proprietor? You certainly can, but is it the smart decision for your business – particularly if you want to scale or sell down the road? In this 60 second video on Entrepreneur.com, I outline the 3 serious reasons to consider forming a formal business entity. The chief appeal […]

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Post image for Basic Training: Bookkeeping and Business Startup

Today’s post deals with the conundrum, how to account for business expenses without a company bank account, and how to set up a company without business funds? Q.:  “I recently formed an LLC to create an online store. Because I saved diligently I had enough money in my personal savings account to cover all setup […]

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Post image for Diversify, But Keep It Legal

Here are tips to help you avoid multiple headaches from having multiple business lines. Tough times call for creative measures. So it’s no surprise that many of the entrepreneurs I’ve encountered are taking on something new: a new line of business, a new venture, a new alliance, a new target market. Let’s look at a […]

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Post image for Basic Training: P is for You Can Pick Your Partners, You Can Pick Your Nose . . .

. . . but you can’t pick your partner’s nose. (Or can you?) I received an inquiry from someone who, I’m sorry to say, is going at this bass-ackwards. She’s chosen a business partner, but not the kind of business she wants to set up. She wants to control all the decisions, but seems more concerned […]

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Many entrepreneurs have law questions about the process of transfer of ownership and closing a business. Sometimes, the transfer of ownership takes place in the context of a company merger or company acquisition. Other times, you may just be looking to sell a corporation, and that’s where a stock transfer takes place. Want to know […]

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Q.:  In a privately held company, is it necessary for a stock transfer between two directors to be approved by the shareholders?   A.:  Under most state laws, shareholders have the right to approve (or disapprove) any transferring ownership is involved, including a stock transfer.  If the company has multiple classes of stock, the shareholders’ […]

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Q.:  I have started two companies one an LLC and the other an S Corp that I used for a very short time and would like to stop using. How do you go about the process to close a business?   A.:  Just as you needed your Secretary of State’s permission to open your business, […]

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