YoungUpstarts
AUGUST 25, 2015
Stocks are issued at the time the company is formed, and more can be issued over time. You can control the power of your company’s stock by issuing different classes. The LLC can have any ownership structure, but by issuing different classes of stock, corporations have almost as much flexibility, just with more paperwork).
Startup Professionals Musings
NOVEMBER 30, 2015
A C-corporation is more complex and expensive, and is recommended only if you expect to pitch to professional investors who demand preferred stock, or to more than 100 potential shareholders. Startups that operate in stealth mode until their solution is perfect usually acquire customers and investors very slowly.
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ReadWriteStart
JUNE 1, 2020
Reasons for funding. ? Scale up your operations. One of the most prominent reasons for funding is to scale up your operations, for expansion and achieve economies of scale. Now you may want to scale up your operations or expand your presence. The third reason is to fund your short term operational expenses or working capital.
David Teten
MARCH 14, 2018
I’ve listed them below in *very* roughly descending order of efficiency, measured by increased dollars one can put to work, divided by the operational dollars required to implement each strategy. . Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives.
Startup Professionals Musings
JANUARY 29, 2018
Unfortunately, in my years since as a small business advisor, I have seen too many founders squander this asset through a lack of understanding of some basic legal and operational issues, or by handing out nominally “free” stock to the wrong people at the wrong time. Negotiate an upgrade from common shares to preferred stock.
Startup Professionals Musings
FEBRUARY 8, 2019
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. Also, mergers, acquisitions, and alliances with other companies almost always drive the need to modify your organizational entity for legal or operational purposes.
Up and Running
AUGUST 28, 2019
The purpose of the bylaws is to outline the basic procedures and operations of your business. Put simply, you’ll issue stock to formalize which people have what amount of ownership stake in your new company. . The cash from each share issued can help the company start, run, and grow operations. In that case, use it!
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