Tag Archives: Financing.

Are you starting a new company and are trying to figure out whether a limited liability company (LLC) or corporation is the right legal structure for your business? There is a lot of information on the Internet about which type of legal structure is best for startups. And there is no shortage of opinions when you talk to accountants, attorneys, and business contacts. You ultimately will need to determine what is best for you and your business, but I wanted to provide some practical perspective based on what I see with actual startups and their experiences.

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.

You are meeting with a potential investor in a few days and they are interested in structuring a possible investment as convertible debt. You need to get up to speed quickly on the key terms and negotiation points for this type of investment.

Raising money for your business may be one of the toughest tasks that you will face as a business owner. Once you have decided to start your business, you will need to investigate the possible alternatives for obtaining business financing. It will be important for you to do your homework in order to understand the different ways of financing your business, the key terms and conditions for each financing alternative and which financing method best suits your business at the present time.