Business Law

Why You Can't Accept Money From Everyone When Funding Your Startup

Many entrepreneurs are unaware of the legal requirements behind accepting investor funding. Accepting money from anyone and everyone is rarely a good idea; in the worst case scenario, it may even be illegal.

The Securities Act of 1933 requires any company, including startups, to provide investors with full disclosure of all facts pertinent to the investors' ability to make an investment decision. While securities legislation has been modernized and simplified in recent years, it's still exceedingly important for entrepreneurs to familiarize themselves with the law or they'll be at risk of subjecting themselves to civil and/or criminal liability.

10 Step Guide to Forming a Corporation in New York

Registering a corporation is not as difficult as you may think. If you properly prepare and take steps to ensuring you managing all the essential requirements to forming a corporate entity, the entire process will be relatively painless. In this post, we identify 10 important steps an entrepreneur should consider when forming a corporation in New York.

Corporate Formalities Required for Personal Liability Protection in Corporations

Corporate formalities are a term that would make any small business owner cringe. However, while corporate formalities might not be your favorite topic, failing to take them into account could cost you more than you could imagine. By not following corporate formalities, business owners risk the personal liability protection they are afforded by having a corporation. Contact Cordero Law LLC to ensure you are following the right corporate formalities. 

Most Favored Nation Clause in Commercial Contracts

A most favored nation clause is a clause that will sometimes be found in commercial contracts. It is a contractual provision in which the seller agrees not to offer a better deal to another buyer without offering similar terms to the original buyer.

However, because of anti-trust issues, using a most favored nation provision must be done under proper specifications.

How to Raise Startup Capital – An Intro Guide to Raising Startup Capital

For a startup company, raising startup capital is one of the most important considerations that needs to be factored in the overall plan of the company. There are many options for startups to raise capital – each with their own set of rules, legalities, and formalities that need to be taken into account.

The question as to how to raise startup capital is asked more often than not when it comes to startups. This is due to the complexituy that surrounds raising capital for a startup.  

Member Managed LLC vs Manager Managed LLC - Which One is Right for Your Business?

The limited liability company, or "LLC", is the structure of choice for most new businesses. When a new LLC is formed, an important decision must be made with regards to the management structure of the company. Business owners can either elect to have their newly formed LLC be a member managed LLC or a manager managed LLC. Both have their own advantages and ensuring you choose the right one is an important decision.

Ownership of Outsourced Work and Why You Should Have a Work For Hire Agreement

In today's world, outsourcing is a common practice many entrepreneurs and businesses are doing. However, when a person or company outsources, many legal issues are involved. Specifically, these issues arise from the ownership of outsourced work and the intellectual property that is created in outsourcing the work.

Because of this confusion, many people who outsource work are now using work for hire agreements, or specifically including a work for hire clause in the employment agreement or independent contractor agreement they are requiring be signed before they start the work.