Dear Clients, Colleagues, and Friends: There are many forms of debt financing available to startups and young companies. Often it is a loan from a family member. This is the most common form of debt financing. There are no other commitments involved other than the terms of the note. Usually, the terms include a low-interest rate and payment due back to the note holder either on-demand or in a short period of time. You wantRead More…
Dear Clients, Colleagues, and Friends: As the California economy opens up again and companies begin to invite employees to the workplace, common questions arise from employers on what they are permitted to do with respect to their returning employees. In addition, many questions remain on how the Paycheck Protection Program (“PPP”) loan may be used to qualify for forgiveness. Below, we provide five of the most common questions recently asked in hopes that it givesRead More…
Dear Clients, Colleagues, and Friends: As we have reported in recent newsletters, the Paycheck Protection Program (“PPP”), brought upon by the CARES Act, helps small businesses by keeping employees on the payroll through this difficult time. Please see our previous entries for PPP details. Today’s significant update is that the U.S. Congress drafted changes to the PPP giving borrowers more flexibility in terms of loan forgiveness. It passed Congress almost unanimously. The key update withRead More…
Dear Clients, Colleagues, and Friends: Each day, we receive many questions from clients about steps employers should take when returning to the workplace. Although each scenario is unique, there are common themes that we receive as well as guidelines that we recommend. First, upon deciding to return to the office, employers should perform a risk assessment to see if the business establishment is ready for a return. This means before opening its doors to theRead More…
With access to skilled talent, and seemingly unlimited venture-funding, it is no surprise that California leads the nation in the number and successful launching of companies. Over the last several years, California healthcare and technology startups have raised almost $10 billion annually. California has Silicon Valley, Silicon Beach, incubators, accelerators, coworker spaces, and leading venture capital firms. Each week, business attorneys are busy guiding entrepreneurs from idea to implementation and from startups to emerging growthRead More…
The founders of a new corporation must address the crucial issue of structuring the capitalization of the corporation. After determining the amount of money the corporation will need for fixed assets, materials and operating expenses, the founders must then decide whether to finance the corporation with debt or equity, the proportion of debt and equity, and the rights, preferences, privileges and restrictions of the stock. This Newsletter shall discuss the advantages and disadvantages of debtRead More…
That is the question most frequently pondered in the area of dispute resolution. Litigation is an imperfect process at best. Winners are often left with pyrrhic victories; losers sometimes lose that which they have struggled to achieve over the course of a lifetime. This Newsletter explores the considerations that are taken into account when deciding whether to litigate; in future Newsletters we will explore alternatives to litigation and preventive measures by which disputes can beRead More…
One of the first decisions to make when starting a new business is the selection of a business entity. This Newsletter will discuss the advantages of the conducting business as a corporation. 1. Limitation of Liability. A corporation which is validly formed, adequately capitalized, and which complies with necessary corporate formalities, protects the owner’s personal assets against business liabilities. This is particularly important if the nature of the business results in potential liabilities which cannotRead More…
Finding money for your business, once you are in business, is a very different process than funding a startup. You already have an ongoing concern and a track record to show your potential sources of capital. And, there is a process that works. Our interpretation of that process:
Most businesses have one or two key individuals who create the environment for success. In a smaller business, the loss of the owner can be a fatal blow. Planning for business succession includes the following options:
