Starkville Startup Attorneys & Lawyers

What is a Most Favored Nation Clause?

Most favored nation startups are new companies that have a most favored nation or MFN clause in agreements with investors. This clause keeps later investors from getting better terms than the first investors, and it's completely different from the clause that involves countries. Most favored nation clauses are terms in many convertible notes. Some clauses make sure all parties in a contract get equal terms. MFNs usually last until the next round of financing, also called an equity round, starts.

Convertible Notes: What Are They?

Convertible notes are loans from investors that convert into equity or stocks when the company reaches prenegotiated milestones. An MFN clause in a convertible note keeps another investor from getting more equity for a similar loan when the company is more successful.

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What is Incorporation?

Incorporating simply means creating a new corporation under the laws of the specific state in which you incorporate. Incorporation can also refer to the formation of a Limited Liability Company (LLC).

Benefits of Incorporating a Business

There are several benefits to incorporating your business, which include the following:

• Incorporating allows you to protect your personal assets. The business’s debts and liabilities are kept separate and cannot

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What is a DMCA Notice?

A DMCA notice informs a company, web host, search engine, or internet service provider that they are hosting or linking to material that infringes on a copyright. The party that receives the notice should take down the material in question as soon as possible. If the site owner doesn't comply, the ISP can forcibly remove the content.

You can send out a DMCA notice, not just for infringing material, but also for any indices, references, or pointers that lead to infringing material.

DMCA stands for Digital Millennium Copyright Act. A DMCA notice is also known as a DMCA takedown notice or a DMCA request. The DMCA covers any copyrighted material that could be infringed on the internet, including:

• Written words, such as articles

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Start-up companies often hope to attract employees and investors by offering them shares of stock in the company.  There are several different types of stock, but the two most important are preferred stock and common stock.  Founders and employees typically receive common stock. Investors usually receive preferred stock.

Companies may receive tax benefits if they issue both common and preferred stock.

What is Common Stock?

As the name suggests, common stock is the most common type of stock.  When people think of "stocks," they are usually thinking of common stocks. Owners of common stock --

• May be paid dividends, but that is not guaranteed

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