Amarillo Startup Attorneys & Lawyers
Amarillo Startup Lawyers
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- 9 min read
What is Corporate Personhood?
Corporations have some of the same rights as people. This is known as corporate personhood. It is the idea that a corporation has its own rights. Corporate personhood has existed much longer than many people realize.
Corporate personhood is not just for large companies. As long as a business is incorporated, it can benefit from corporate personhood. Organizations that benefit from corporate personhood can include:
- Large businesses
- Small businesses
- For-profit organizations
Because it bought land, the Catholic Church is one of the earliest examples of corporate personhood.
Many people are against the idea of corporate personhood. In their opinion, companies are not people and do not deserve the same rights as a regular person. However, this legal designation
- 3 min read
Form 2553: What is it?
Form 2553 is an IRS form. It must be filed when an eligible entity wishes to elect “S” corporation status under the Internal Revenue Code. (See, IRC Section 1362(a))
Why is Form 2553 Important?
Electing to have a particular entity treated as an “S” corporation by the IRS for taxation purposes (also known as, making an “S” election) can, depending on various factors, provide a tax savings
- 2 min read
Many are unaware about the different types of bankruptcy they could be filing for. We’ve heard about the different chapters but don’t know which exactly would fit our needs best. The chapter just refers to the chapter the specific type of bankruptcy is located in Title 13 of the United States Bankruptcy Code.
Chapter 13 bankruptcy is sometimes referred to as “reorganization” bankruptcy for individuals.
How is Chapter 13 different than Chapter 7?
Chapter 13 is different from Chapter 7 bankruptcy in tha
- 7 min read
What is a Restricted Stock Unit?
A Restricted Stock Unit (RSU) refers to a grant of a value equal to an amount of a company’s common stock. The RSU is typically granted to a new or valuable employee as an incentive for employment or to meet specified performance goals. In the case of a new employee, the RSU plan is commonly included as part of the employee’s initial compensation package. RSUs are very popular today with startups and technology companies seeking to hire and retain highly skilled and talented employees.
How Restricted Stock Units Work
With an RSU plan, the company offers the employee an economic interest in the company stated as a specific number of shares of company stock. The stock is not immediately giv
- 4 min read
What Are Tag Along Rights?
Tag along rights or "co-sale rights" are legal agreements that guarantee minority stakeholders the right to sell their shares in the company at the same time and under the same conditions as the majority stakeholder. These rights are often used when companies are founded and capitalized because it protects investors and encourages them to buy the company's stock at an early stage. This is especially true for most angel investors, who won't even think of joining unless there are tag along rights.
Why Are Tag Along Rights Important?
Tag along rights protect minority stakeholders by giving them a certain amount of control over their own investments. If a principal stakeholder of the company liquidates its share, smaller investors won't get a bad deal. In simple words: If Investor A is selling their interest in the comp