When business owners are presented with option to sell equity for fund raising, they have several options to consider because not all equity shares are created equal. One common approach is the sale of preferred stocks. This article covers the key variations of preferred with unique rights which can be provided to the investors.
An employer must comply with extensive notice, consent, and disclosure rules under the Fair Credit Reporting Act (FCRA), when an employer uses third parties to prepare certain background reports on employees or applicants. California has its own mini-FCRA law that further restricts how an employer may use an applicant or
Merger and Acquisition (M&A) transactions are complex for both the buyer side and the seller side. M&A in the healthcare industry adds an additional layer of challenges when it comes to regulatory compliance under Medicare/Medicaid, and obligations under third party contracts.
When negotiating a contract which involves personally identifiable information (PII) or other types of confidential data, it is essential to consider a multitude of privacy and data security controls. First, what is the collection, processing, sharing, retention, and destruction of data procedure; and how these procedures may be subject to federal, state, and/or international legal obligations. Second, how to reduce legal and regulatory risks surrounding the collection and generation of data, and accessing and sharing of data.
How to valuate a startup for equity financing is often asked by startups and early stage companies. There is no exact formula when assembling a valuation for a startup company. This is because there are numerous unknown or unproven factors that may greatly affect the outcome of the companies performance
On May 9, 2019, the U.S. Financial Crimes Enforcement Network (FinCEN) published new guidance entitled, Application of FinCEN’s Regulations to Certain Business Models Involving Convertible Virtual Currencies. The Guidance, presented as a consolidation of FinCEN regulations and administrative rulings, outlines how the Bank Secrecy Act (31 U.S.C. § 5311, et
The process of hiring new employees can often be a legal minefield for early-stage companies. Below is a list of considerations to keep in mind during the pre-interview, interview, and post-interview processes. Risky Questions During A Job Interview The job interview process is important to ensure your early-stage company obtains
Forming a business is a multi-step process. An entrepreneur should first determine what type of business structure (eg LLC, Corporation, Partnership) to have, followed up by the choice of state, and then consider: i) choose a business name; ii) name reservation; iii) DBAs; and iv) regulatory compliance.