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Tips on how entrepreneurs can utilize their legal team more cost effectively.

Specialized paralegals can be a great resource. Here’s a quick list of just a few things you should be able to delegate to your paralegal.

Transactional Work.

Although post-closing tasks such as compiling a closing volume is a common task, they should also be able to create and maintain a closing checklist, draft closing certificates and ancillary agreements, and provide assistance during the due diligence process. Pro tip: Utilize your paralegal as much as their able, it will alleviate deal pressure so you can focus on the main agreements and save time during the closing volume compilation process.

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A primer on financing your idea into reality.

Funding your company is paramount.  At what price, do I value my idea?  How should I structure incoming financing from investors?  These are just some of the questions you should be asking yourself before you start negotiating terms with your future investors. For newbie start-up founders, this is an important hurdle to overcome, especially if this is your first time in the game. Not to worry though, there’s a slew of relevant content out there to get you up to speed, and your start-up attorney, assuming he/she knows a thing or two, can guide you through the weeds.

As a basic primer though, there are two commonly used vehicles to get money in the bank. Issuing promissory notes and outright selling a portion of your company based on a estimated valuation of your idea. Notes and equity will be your knights in white satin so to speak. They differ and choosing which is better for you is based on your individual situation, so it would be good to familiarize yourself with them.
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Annual Delaware Beast of Burden

Delaware incorporated companies must file and pay franchise taxes each year.  The deadline to do so is March 1st.

There are two ways taxes owed can be calculated – the Authorized Shares Method or  the Assumed Par Value Capital Method.  Details on each are below.  The State allows the method that results in the lesser tax to be paid to satisfy all liability.

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Liquidity: A wading game.

These days my wife and I are teaching our 2 year-old daughter how to swim.  We ALL are having a blast!

A few days ago BusinessInsider.com had posted comments from a CNBC exclusive interview with Marc Andreessen about the current attitudes of private company entrepreneurs and how its effecting the broader investor market.  Marc’s comments on this topic are very insightful.  You can read the full article here It’s no question, nor secret, that an IPO is a way for early investors of private companies to obtain liquidity on their investments.  Its one of a limited amount of successful end-games.
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