I am wanting to start an LLC but am not sure if the name I have in mind is available.
You can check name availability here: https://secure.in.gov/sos/online_corps/name_availability.aspx
You can find a great lawyer to help you with your LLC here: http://www.avvo.com/business-lawyer/in.htmlSee question
Hello, Can I start a fundraising before the company is created, so I could pay legal creation's procedures with the fundraised, or do I need to create and register the company first ? If I can fundraise before the company's creat...
If I understand your question correctly, you would like to get the cash first to finance any organizational expenses you have. While there are some contorted ways to do this, the concept doesn’t make much sense.
First, you mention VCs. VCs like to invest in big ideas that are already under way. Few investors are going to invest just in your ideas or “slideware” (i.e., a PowerPoint explaining your ideas). Sometimes they will do it if you already have a successful start-up on your resume; but if that were the case you wouldn’t be worrying about the costs of forming your corporate entity.
Second, there is a standard dance that goes into raising money. If you follow the steps correctly then you have a better chance of VCs giving you money. If you introduce an odd dance step then VCs ask lots of questions, slow down your deal and possibly avoid it all together. Why waste a minute explaining why you don’t have a corporate entity in place? It’s just not that expensive if money is around the corner.
Third, if your idea is so great that VCs will fund it before you even have the corporate entity organized, then a law firm will advance you the funds until your round closes. Legit VCs and legit law firms know each other and, if the deal is real, most start-up savvy law firms are happy to push-out a soon-to-be-funded start-up’s billings until the round closes.
Finally, you should want a legal entity in place in order to shield your personal assets. If you raise money before that entity is in place, then an investor may have the ability to pursue your personal assets (your car, for example) for repayment of those funds.
Good luck with your big new idea!See question
I'm starting a new internet site and am looking for the names of the better startup attorneys in Los Angeles. Thank You
Here's a good place to start:
Delaware company doing business out of San Diego, CA Promissory note in the hundreds of thousands of dollars. They ARE STILL IN BUSINESS as far as I know. I would like to use AVVO as a tool to help find a lawyer but I don't know what category t...
I can't help, but one of these lawyers can:
We have a startup with a team of 9 people and we just release the beta of our saas product and thinking M&A. We are negociating deals with 2 companies and would like to explore M&A the same time to be acquired by a company that has bigger sales mu...
This is largely a banking question, not a legal question. Still, let me offer my thoughts based on my corporate development experience.
First, I’m a big believer that if you focus on M&A from the outset (or really at any time), you significantly increase your chance of failure. Focus on building an amazing product, and if you succeed then maybe someone will try to buy your product/company. If they do, only then put some of your organizational focus into M&A.
IMO, products built for acquisition are seldom amazing, and less-than-amazing products are seldom acquired.
As for valuation, it really depends on how strategic you are to a potential buyer. If someone really wants your amazing product, then the valuation is whatever they are willing to pay. Many in the investing world often say that “valuation” is simply where a willing buyer meets a willing seller. You have to think through *why* a buyer wants you, and then highlight that “why” as much as possible during the valuation process.
If possible, you should try to build a valuation case based on comparable acquisitions. A sophisticated buyer will surely do the same. So, whether it is trailing revenue, revenue run rate, ebitda or net income, you should look at acquisition multiples based on those metrics to form an argument for your valuation. Let’s say you have 5mm in 12-month trailing revenue and you know of six similar companies who have sold for 10x trailing revenue, then you should use this as a benchmark in negotiating with a potential buyer.
Finally, the best way I know to drive valuation is have at least two buyers competing with one another. In every instance, healthy completion will only help your valuation. To combat this, many buyers will try to get you to “go exclusive” with them while they do due diligence on your business, etc. Try to avoid this to preserve as much competition as possible.
I am joining a technology startup as a CTO. I have been offered equity by the company as well as co founder title. The documents I will be signing have listed the vesting schedule and the amount of equity I will be receiving. The documents I am...
First of all, you are smart to be thinking about your grant as a percentage rather than an absolute number. However, that is a percentage of the fully diluted equity *at the time of your grant.* That is what Dana is speaking to, and I agree with him.
However, there is sometimes confusion between the percentage offered and the actual number of shares granted thereunder. To ensure you are getting the percentage you expect, you can do one of two things: (1) Get the fully diluted equity number from the company (i.e., stock outstanding, plus any shares underlying options and other derivatives), multiply FDE by your expected percentage and then make sure that the product (absolute number of shares to be granted to you) is in your offer letter. OR (2) Have the offer letter express both the absolute number of shares to be granted to you *plus* a confirmation that this is x% of the FDE at the time of grant. #1 is usually how it is done; but, if the company really sold you on a percentage of equity, then #2 is reasonable.
Good luck and congrats on your offer.
Avvo CEO (and former corporatate lawyer :-))
I Fell down 7 stone steps in a business building. The landing of the steps appeared longer, and the stairs all appear to be the same color leading to the appearance of a wider landing.. Railings along each wall on the side of the stairs. Not v...
You should talk to a lawyer. Avvo rates and profiles 90% of the personal injury lawyers in WA - see the list below. You might also look into speaking to a couple of the many attorneys who gave you excellent advice here. I'm sure that one of them could help you.
Bussiness guide lines needed for start up.
Here is Avvo's start-up center. Lots of info and guidelines. http://www.avvo.com/topics/67-startupsSee question
Hi I work for a radio station who has been asked to come on board as the main sponsor for a potential music festival. We are in the very beginning stages of considering the event and are looking into trademarking the festival name. We are a smalle...
You can start here: http://www.avvo.com/topics/67-startups/sections/1555-trademarks
I did a quick search on Trademark basics in Avvo and found dozens of helpful guides. Here is part 1 of a thorough 4-part guide. http://www.avvo.com/legal-guides/ugc/trademark-basics-part-1-selecting-a-trademark?ref=kb_serp_title_9
With just a little search on Avvo you can learn a lot - for free.
We are a hot new startup about to launch a new mobile technology and wanted to see if lawyers are willing to help a startup in our situation file a provisional patent in hopes of building a relationship and potentially more work.
If your startup is as "hot" as you say, you can typically find a start-up centric law firm (in your area Wilson Sonsini, Gunderson, Cooley, Fenwick, etc.) that will forego fees until your first round of financing. Still, you need to convince them that your idea is worth taking the delayed-payment risk and the more sophisticated firms have seen *a lot* of startups that found themselves very hot. Good luck.See question