Providence Startup Attorneys & Lawyers

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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Net 30: What Is it?

Net 30 is an invoice payment phrase that means the customer must pay the entirety of their bill in 30 days or fewer. Often if the customer does not pay within the 30 day period, interest is charged.

Not all clients will understand what net 30 means, so it is important to make a note somewhere on the invoice to let first-time clients know what is expected. If you have not received payment and the deadline for the net 30 payment is approaching, it is good practice to issue a reminder to your customer.

Advantages of Offering Net 30

• As the seller, offering Net 30 to your customers shows that you trust them. Some large companies and government agencies demand Net 30 terms from their suppliers, so offering Net 30 terms to your clients allows you to maintain a competitive edge against other businesses in your niche.

• As the customer, Net 30 is great

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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,

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Updated November 26, 2020:

There are many great reasons to start your own company, including the desire to be your own boss, the desire to make something happen, passion about your product or service, or even the desire to make more money. A successful startup will need the following:

• A solid sales and marketing plan;
• High-quality accounting;
• A strong legal team;
• A great corporate structure;
• A dedicated managerial team;
• Healthy financial resources or a solid plan to get them; and
• Ensuring that best industry practices are followed.

Regardless of the reason for starting your own company, a startup requires many factors to work so the likelihood of success for startups is still relatively low. Many entrepreneurs are satisfie

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If your company sells securities, you have a duty to keep investors informed. Often, this is done through your quarterly and annual reports. Other events may need to be reported on Form 8-K.

What Is Form 8-K?

The form's official title is "Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934." It is used to report material events affecting a company subject to SEC oversight.

An event is material when it could affect a reasonable shareholder's investment decision. This includes:

Acquisition of or by another company.

Bankruptcy.

Corporate restructuring.

Changes to the board of directors.

Changing the fiscal year.

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