Greensboro Startup Attorneys & Lawyers

Updated August 14, 2020:

What Is an Exclusivity Clause?

An exclusivity clause is part of a bigger legal document that restricts the signer from buying, selling, or promoting any goods or services from any person or company other than the issuing company associated with the contract. In other words, the company or individual works exclusively with the issuer of the contract. Many company owners who are excited and eager to get started in business may overlook the clause. It may also be included as part of another legal document or contract.

However, an agreement of this nature should be taken seriously. Make sure you understand the terms and potential risks involved before you sign. Violating an exclusivity clause can come with stiff penalties and fines. It is also very difficult to break this clause of a contract without being held responsible for the penalties listed. The clause is also referred to

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What is Secured Debt?

Secured debt is a debt that's secured by pledging an asset for collateral. It means someone took on a debt and backed it with a piece of property they own. The lender puts a lien on the asset that's been pledged, giving them the ability to legally take the asset if the debt is defaulted on.

Common examples of a secured debt include a mortgage and a car loan. The car or the house become the security asset for the debt that you took on. If you default on the payments for any reason, the lender has the right to take you to court in order to recover the asset.

A lender usually requires the asset be maintained and/or insured to a set standard in order to maintain asset

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Updated August 12, 2020:

Many employers now offer stock options in place of other popular benefits as a part of their employee incentive packages. Stock options can be confusing to new employees receiving them, and even some employers offering them. For example, some people do not realize that an employee stock option has no real value until it is exercised.

In this article, we take a look at stock options: what they are, how they are exercised, their tax implications, and more. We’ll also offer some suggestions on where to turn for financial advice regarding your stock option questions.

Keep in mind that exercising stock options can be complicated, and result in significant financial and tax consequences. It is highly recommended, therefore, that you consult with an attorney, accountant, or other experienced tax professional before exercising any stock option.

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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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What is Equity?

Equity can mean a variety of things, but it generally means how much of something you own after you have paid off any money that you owe to others (debt). In accounting terms, equity is represented with the equation:

Equity = Assets - Liabilities

However, in the startup world, equity usually refers to two specific things:

Venture Capital Financing – giving a company a piece of your company in exchange for getting money from them today.

Equity compensation – to get better workers, a startup may offer stock options as a source of additional income. These options may be used at a later date and the worker gets cash.

Why is Equity Important?

Equity is important because it has value. Think about equity like a pizza. If you have a pizz

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