Remove Internet Remove Merger Remove Preferred Stock Remove Sales
article thumbnail

Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Let’s take an example – In the case of an internet or app business, the user traction and market penetration is a must. The shares given out can either be common stocks or preferred stocks. ? Debt investment. Instead of funding, you pay the investors a structured royalty, which is a portion of the sales.

Startup 150
article thumbnail

Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

This is nothing new; long favored by family-controlled media empires such as Rupert Murdoch’s News Corporation , among Internet firms alone, Google took a dual-class approach when going public in 2004. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159
article thumbnail

5 Keys To Mitigating New Venture Tax And Legal Issues

Startup Professionals Musings

In addition, many corporations have quarterly filing requirements, or even monthly ones if you have payroll taxes, sales taxes, or state filing requirements. You may start as an LLC but find that a potentially high-value investor insists on having preferred stock, which is only available with a C-Corp.

LLC 210