Tag Archives: Equity.

Here are the 10 million reasons: Down the road your C corporation could help you save taxes on up to $10 million when you sell the stock of your company. You are starting a new company now and you are trying to figure out whether you should form a limited liability company (LLC) or a corporation. And, even if you decide to set up a corporation, should it be an S corporation or a C corporation?

Let’s say you have started a new company and now you need to raise money from investors in order to bring some outside capital or investment into your company. Do you set up an equity financing and sell shares to equity investors? Or do you take in new investment as debt that must be repaid? When getting ready to raise money, many entrepreneurs and small business owners are not sure how to structure the proposed financing that they need.

Entrepreneur’s Question: “Could you please clarify for us what type of information our company is legally obligated to provide to (minority) shareholders, and how often (e.g., financial statements, cap table, etc.)?”

Entrepreneur’s Question: “How should I expect liquidation preferences for holders of convertible notes to work?”

Equity crowdfunding will allow your company to raise money online by selling small amounts of stock to a large number of individual investors. As you plan ahead for your business, it’s important to get your company ready for equity crowdfunding.