A few years ago, I worked at a startup and received about 20,000 stock options. Earlier this year, I exercised about half of those options and paid the company to exercise it. Recently, I heard they are not thinking of IPO. Instead, they are le...
Responding to the questions that have been asked:
1. No one on Avvo can tell you whether to exercise your stock options, because that is a personal financial decision rather than a legal issue.
2. What happens to unexercised options if a company is sold depends on the arrangements that are made between the company and the acquirer. No one on Avvo can predict which arrangements will be made.
3. Stock that you already own probably cannot be taken away from you, though a lawyer would need to analyze all relevant documentation to provide a definitive answer to this question.
Our LLC has 3 participants our investor has spent 600,000 on our start up. He has presented me with a 50 page operating agreement which includes the ability to fire me anytime and that as his investment goes up he will reach 87% ownership and w...
Your problem has been caused by (a) proceeding with business activities before the Operating Agreement was in place and (b) forming the LLC without obtaining a lawyer's guidance.
You have a mess on your hands. You need to retain an experienced business lawyer to advise you - and it is not clear how, even with such help, this situation will turn out. But if you don't retain a lawyer, this mess is likely to turn into a disaster.See question
Well, i am from India and I want to start my business in the USA. All I want to know is, can a nonresident alien like me start a business and Business Bank account in the USA Without actually visiting the country? I have heard that it's difficul...
Yes, a nonresident alien can start a business in the U.S. without coming here.
I have helped dozens of international clients do precisely that, and I have blogged extensively about the challenges that they face. I recommend that you start at http://danashultz.com/blog/foreign-countries/ and follow links from there.
You're right that opening a bank account here without coming to the U.S. can be difficult, though there are several potential workarounds. I recommend that you read the post at http://danashultz.com/blog/2015/04/01/how-can-a-foreigner-open-a-bank-account-in-the-u-s/.See question
We signed a lease-option purchase contract for our home in Aptos, Ca. for $995,000 with Lessee/buyer in September of 2015, ending 2/28/17. We extended the contract one month to 3/18/17. The Lessee/buyer was unable to perform, however his parents...
You should use Find a Lawyer at the top of the page to locate an experienced real estate lawyer in your area.See question
I formed my company in Delaware in January of this year. Do I still need to obtain a good standing certificate to file a statement of foreign qualification? I thought I couldn't even be out of good standing because we didn't have taxes due this ye...
Yes, any foreign entity that wants to qualify to do business in California must provide a certificate of good standing.
This is required even if the entity was formed yesterday. There are no exceptions to this requirement.See question
In the Series Seed Agreement by Ted Wang of Fenwick, there's word as follows in the "Market Stand-Off Agreement": "or has otherwise provided written interpretive guidance regarding such rule, in each case, so as to eliminate the prohibition of...
I gather that you're the person from S.F. who, in an earlier question, confused securities registration and an IPO - because you have made the same mistake in this question.
The relevant agreement provision pertains to the filing of any securities registration statement, not an IPO.
The quoted provision (which needs additional context to be understood properly) pertains to not extending a 180-day market stand-off period under certain conditions pertaining to amendment or repeal of a specified NASD Rule.
That contract provision has nothing to do with whether a given analyst at a brokerage may publish research about a given company before its IPO.
To expand upon a comment made earlier: If your company is about receive a Series Seed investment, your company needs to retain an experienced business lawyer to represent it.See question
My company is dealing with VC investors for funding these days, and in the stock purchase agreement, there's clause saying that the stock shares given to VC investor in this round does not need to be registered with SEC under the Securities Act. ...
I agree with my colleagues:
- Registration of securities with the SEC is not the same as an initial public offering (IPO).
- Securities registration is a complex area of law. Please see the SEC's page at https://www.sec.gov/answers/regis33.htm.
- If your corporation is accepting VC investment, it needs its own lawyer. You can use Find a Lawyer at the top of the page to look for experienced business lawyers here in the Bay Area.
We founded the startup together but he feels I haven't performed to his expectations. Now, he wants me out. We incorporated as a Delaware c-corp and used standard startup paperwork (Founder Stock Purchase Agreement). We have no employment contr...
As my colleagues have suggested, a lawyer would need to analyze all relevant documents and communications to render an opinion concerning your rights and obligation.
Generally, one shareholder cannot take away another shareholder's shares. However, no one on Avvo knows precisely what your Stock Purchase Agreement says.
You can use Find a Lawyer at the top of the page to find an experienced business lawyer here in the Bay Area to advise you.See question
I went for Sole proprietor to S-Corp just recently. I made the mistake on using my Home address. I thought that with the registered agent would take care of the address. But it didn't. I have not sent my Statement of Information yet. Before I send...
You can use a UPS Store address as your corporation's virtual business address.
However, you cannot use U.S. Postal Service PO box as your corporation's business address.
For more information about virtual office choices, please see "Virtual Office Choices when You Need a Physical Address" at http://danashultz.com/blog/2014/03/27/virtual-office-choices-when-you-need-a-physical-address/.See question
I'm starting my own photography business and thinking to create an agreement document between client and myself. If I don't want to mention about the price that I will charge client, can there be any future consequences? The reason I want to cr...
There are at least two reasons why what you are proposing is a really bad idea.
First, you want to lie about what you are doing because it violates applicable law. Lying is wrong.
Second, you will be giving your counterparty an open invitation to claim that you should not be paid, because s/he only was helping you with your hobby. After all, if payment was required, it would be included in the agreement!
Your asking this question shows that you know that what you are proposing is inappropriate. Don't do it.See question