Free Confidential Consultation - (310) 475-0321

CAPITAL STRUCTURE OF A NEW CORPORATION

April 5, 2019

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 debt vs. equity, and the various features of each.

Read more

TO LITIGATE OR NOT TO LITIGATE?

April 5, 2019

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 be resolved before the question of litigation ever arises.

Read more

THE BENEFITS OF INCORPORATING

April 5, 2019

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 cannot be adequately covered by insurance, or if the owner of the business has substantial net worth or income outside of the business. However, it must be kept in mind that landlords and bankers may require the owner of a small business to personally guarantee the corporation’s obligations.

Read more

RECAPITALIZING YOUR BUSINESS

April 5, 2019

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:

Read more

BUSINESS SUCCESSION

April 5, 2019

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:

Read more