Phoenix Contract Attorneys & Lawyers

What is a Sole Proprietorship?

A sole proprietorship is a business with a single owner. It is the dream for many people. These businesses, which are not registered as an LLC (limited liability company), a partnership, or a corporation, have the benefit of flexibility. Sole proprietors can work as freelancers — independent contractors — or they can run physical, on-the-ground businesses. 

Often, home-based businesses are sole proprietorships. There are 23 million of these in operation today, vastly more than any other traditional forms. This sort of business carries

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Updated June 25, 2020:

It takes money to turn a great idea into a great product, but “money doesn’t grow on trees” and you may not have thousands of dollars just waiting to be spent.  So how do you turn your dream into a reality?  Here are some of the best options.  

Self-Funding / Bootstrapping

Many entrepreneurs start with some level of self-funding (also known as bootstrapping) and, in fact, future investors likely will want to see that you have some “skin in the game”.  Even if you can only put in a little money, it is worth considering the benefits. For example, you don't have to worry about keeping investors happy. You also can keep more profits to yourself.  Many founders also hold off on taking a salary, consider tapping into the 401(k) retirement account, and/or have a side job to help make ends meet while they get their business up and running.

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What are Term Sheets? 

A term sheet is a document presented to a company by an angel investor or venture capital investor who is considering an investment in your company. The terms stated in the term sheet are typically non-binding. In this sense, a term sheet is similar to a letter of intent. The term sheet provides a blueprint of the proposed investment, containing specific information regarding the conditions that the investor would expect the company to abide by in the event of the investor’s capital investment. Term sheets are often likened to a prenuptial agreement in a marriage.

Understanding the Parts of a Term Sheet 

Term sheets typically contain a great deal of important information, set out in three specific sections: 

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Updated October 30, 2020:

Before you purchase stock or issue stock as part of a new company, you need to have an understanding of the basic classes of stock. Each class of stock comes with its own package of features (voting rights, price, payout priority, etc.), resulting in a number of advantages and disadvantages associated with each. Here’s a look.

What Are Classes of Stock?

In the most general terms, there are two main types of stock: common and preferred. However, each type of stock may be further distinguished by class.

Note: “Classes of stock” should not be confused with “classes of shares.” Although the two terms may be interchangeable when referring to company stock, the term “classes of shares” may also refer to different classes of mutual fund shares.

Why are Classes of Sto

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