No, You Don’t Need a Holding Company for Your Startup

One question I seem to be hearing more often from prospective clients lately: “How do I set up a holding company for my startup?” The answer is you don’t. Or, perhaps more precisely, you shouldn’t. A holding company is a company that owns other companies. The classic and most successful example is Berkshire Hathaway, the … Read More

Limits on Limited Liability: When You Become Liable For Your Business’s Debts

Many people form LLCs or corporations to protect their personal assets. You don’t want to lose your car, your house, or your personal savings because a business venture didn’t work out. Forming an LLC or corporation gives you access to limited liability. But LLCs and corporations must be property run to maintain that limited liability. … Read More

Why Your Kickstarter Project Should Form a Limited Liability Company

Kickstarter alone has led to almost 3 billion dollars of funding to nearly 120,000 projects. Crowdsourcing has become a viable alternative to traditional funding sources, whether the focus is launching a specific project or building a business. The success stories of crowdsourced funding are as varied as the projects funded. However, the lessons from failed … Read More

Five Reasons NOT to Form Your Startup As an LLC

There are plenty of savvy startup experts who will tell you that there is absolutely no reason to form your startup as an LLC. You should always be a Delaware C Corporation. If you talk to any of the major accelerators, that’s what they’ll tell you. Same for most VCs. But make no mistake, there … Read More

Five Ways to Handle Startup Founder Disputes

Conflicts with your business associate(s), particularly for start-ups, can be difficult. Most importantly, you want to address and resolve those conflicts before they interrupt your bottom line—building a successful company and promoting a solid venture. It cannot be said enough: Start-ups and any other business relationships should be grounded in written documentation. If you have … Read More

Why Hiring a Good Startup Lawyer is About More Than Just Documents

When you’re a startup lawyer, part of your job is to serve as a document merchant. It’s part of the job, but it’s probably my least favorite part of the job. I love learning from startups. I love working with startups. Working with growing startups to make them better — that’s just what we do. Providing high-quality documents … Read More

10 Common Mistakes in Business Contracts

Having to negotiate and formalize a contract is great news for a startup. What it means is, we’re in business! But it also means you’ve come to a place where your choices and actions have real consequences. Make no mistake, one badly constructed contract absolutely has the power to undo every minute of work you’ve … Read More