Steven Stark Startup Lawyer for Simpsonville, SC
Joshua Garber Startup Lawyer for Simpsonville, SC
William Smith Startup Lawyer for Simpsonville, SC
Vadim Alden Startup Lawyer for Simpsonville, SC
Miriam Ross, Esq. Startup Lawyer for Simpsonville, SC
Eli Marchbanks Startup Lawyer for Simpsonville, SC
Alex Robertson Startup Lawyer for Simpsonville, SC
George Naggiar Startup Lawyer for Simpsonville, SC
Simpsonville Startup Lawyers
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- 5 min read
Reverse Vesting: What Is It?
Reverse vesting occurs when a company's co-founder receives their shares and ownership interest upfront. This exchange is subject to vesting similar to employee stock options. If the co-founder leaves, the company may repurchase a set amount of those shares.
What Is a Restricted Stock Purchase Agreement?
When a company wants to initiate a repurchase of the co-founder's stock, it uses a process called a restricted stock purchase agreement. It's a specific term that reflects the type of stock, a restricted class, and the type of contract.
The purchase agreement is the agreement between the co-founder and the company that the latter party can buy back the stock. The transaction isn't guaranteed. They're simply holding the right to do it if the situation arises.
The business keeps the restricte
PLLC: What Is It?
A PLLC is a Professional Limited Liability Company that exists in some state -- it is a limited liability company specifically designed for licensed professionals, such as doctors, lawyers, engineers, accountants and members of other professions. Only licensed professionals generally can form PLLC’s, and the services that constitute professional services vary from state to state. Call your state licensing board to confirm. PLLC’s must be organized to only provide the services of the licensed professionals.
Why Are PLLCs Important?
Some states explicitly forbid licensed professionals from forming an LLC. Instead, they must form a PLLC.
Reasons to Consider Not Using a PLLC
Your state may not have laws in place for the approval of PLLCs. In this case, you likely should file normal LLC paperwork.
Reasons to Con
- 7 min read
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 dangers with it, and it's important to understand them so you can avoid pitfalls in bookkeeping, taxes, and other potential liabilities.
Sole Proprietorship vs. Incorporated Business
There's one major difference between a sole proprietorship and a reg
- 5 min read
Starting a business can be exciting and rewarding, but can also be complicated and nerve wracking. Your first order of business will be to decide on an entity type. Common entity types include, sole proprietorships, partnerships, corporations, DBAs and limited liability companies (LLCs). An LLC is a legal form that is considered to exist separate from its members, protecting them from total financial exposure by limiting liability to the amount of the financial contribution made by each. The members own and manage the company unless otherwise provided for in the LLC’s Articles of Organization.
Interested in forming an LLC in the State of Michigan? Here’s a look at the steps you’ll be taking. Remember, though, that it is always a good idea to consult with an attorney before starting the LLC formation process.
Choose Your Company’s Name
The first step in forming your LLC in Michigan is to c
- 5 min read
LLC Versus C Corp: What Is It?
An LLC is a business entity that is legally separate from its owners, who are known as "members." An LLC can have one member or many members.
A C Corporation refers to any corporation taxed separately from its owners. Unlike S Corporations, taxing of C Corporations occurs twice, once on the earnings and again on the salaries of the owners.
Similarities of an LLC and an S Corp
LLCs and S Corps have several similarities:
- Limited liability protection. In both an LLC and an S Corp, owners are not personally responsible for business debts or liabilities.
- Separate entities. LLCs and S Corps are separate legal entities formed through a state filing.
- Pass-through taxation. Both usually receive the pass-through tax, meaning they are not double taxed.