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

Startup Checklist

The Ultimate Startup Checklist

By combing the Interwebs, poring through my personal library, and applying my own experience in working with more than 100 startups, I’ve compiled this checklist of 25 items to review and consider as you launch your startup. I hope you find it useful. Decide whether starting a business is right for you and what kind … Read More

Questions to Ask When Starting a Business

The most important legal consideration when you are starting a business is to make sure that everyone knows where they stand with the company. The next step is to make sure that there is clear, written documentation of everyone’s status in the company. To do this correctly, first you have to consider all the relevant … Read More

Why Partnerships and Sole Proprietorships Rarely Makes Sense Today

According to the IRS, there are five types of business entities: Sole Proprietorships, Partnerships, Corporations, S Corporations, and Limited Liability Companies. Many state statutes allow for additional entities, such as Limited Liability Partnerships and L3Cs (You can register in Colorado as the former, not the latter). For the majority of entrepreneurs, the only real choices … Read More