Huntsville Startup Attorneys & Lawyers

Pre-Money Valuation: What Is It?

Pre-money valuation (PMV) is the initial value of a company before any type of investment. The capital a business receives after its pre-money valuation is called post-money valuation.

Why Is Pre-Money Evaluation Important?

• PMV determines the value of company shares.
• Through PMV, an investor can determine the value of a company's shares.
• Through PMV, anyone can calculate the total value of a company.
• Using PMV, the parties involved with an investment can determine how much of the company each party controls after the investment.

How Pre-Money Evaluation Works

Think of PMV as a simple calculation that investors use to weigh the value of becoming a shareholder. A company with a PMV of $10 million that has 1 million shares has value of $10 per share. When an angel investor offers to add $5 million more, the company's worth increases 50 percent to $15 millio

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You’ve decided to start your own business in Ohio. Get your business off to a good start by taking the steps you need to form and operate a legal business entity in Ohio.

Why create an LLC in Ohio?

Many small business owners form a limited liability corporation, or LLC, when starting a new business. Creating a business entity helps ensure you are not personally responsible for paying business-related debts. For example, if someone slips and falls on the sidewalk outside your shop, that person may sue for damages. If you have not created a formal company, you might need to pay damages with personal, not business-related, funds.

Likewise, if your business runs into trouble and ra

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Experts will tell you that Wyoming is a great state for starting an LLC. Wyoming enjoys a positive reputation for being pro-entrepreneur, and for providing quick and easy formation of an LLC. LLCs in Wyoming additionally enjoy a variety of tax breaks and other benefits. Here’s a look at what it takes to form and operate an LLC in Wyoming.

Wyoming makes it as easy as possible to form an LLC in the state. Nevertheless, it is highly recommended that you consult with a professional, like an experienced business attorney, before starting your LLC formation process.

Wyoming LLC: What Is It?

A limi

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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
• Churches
• 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

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What is an Operating Agreement?

An operating agreement is a written legal agreement among the members of your Limited Liability Company (LLC). The operating agreement explains how your company will be run, the rights and responsibilities of LLC members, the process adding and removing LLC members, and other important operating rules. While LLC operating agreements are not mandatory in all states, it's generally advisable for LLCs to have an operating agreement  in place.

LLC operating agreements can be created either at the time of the LLC’s formation, or at anytime after formation.

Other names for LLC Operating Agreements.

When researching LLC operating agreements, bear in mind that they may also be referred to

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