Hiring a business startup lawyer in Los Angeles can get a costly. There is hope! Many firms, including KAASS Law understand the set-backs businesses and startups encounter, especially when it comes to capital. The good news is our business lawyers offer various fee options and try and work around the startup's budget.
Without sounding too bias, hiring an experienced attorney from the get-go may make a huge difference in any business, including startups. In doing so, but specifically early in the process may help in avoiding huge costs that may crop up down the line due to an unexpected turn of events. With any business or project it's safe to say, it is usually important to have a solid foundation before adding the other layers.
There are a plethora of business models including the corporation and corporate sub-types, limited liability companies (LLC), and partnerships, such as Limited Liability Partnerships, General Partnerships, and so forth.
There are a wide variety of important legal documents and business decisions that an experienced business attorney may assist with including: incorporating or executing an operating agreement, choosing the state of incorporation, executing non-compete and non-disclosure agreements, hiring and classifying employees, independent contractors, and consultants, and other business transaction agreements.
Our business startup attorneys have years of experience in representing business clients with their operating needs. By hiring an expert attorney early in the process you plan for the unexpected and avoid the pitfalls of costly litigation.
Two or more partners are needed to form a partnership and it doesn’t require formalities. General partnership can be formed by a(n) written/oral partnership agreement or simply by partners' conducts. In contrast, in most states, the number of people needed to form a corporation varies. Limited Liability Companies require paying a fee and filing your business with the secretary of state. Choosing your startup's entity formation depends on, amongst other factors, what your objectives and goals are, liability concerns, and tax preferences.
Running a small business or starting an startup business is an exciting venture that can lead to the financial freedom simple employees work their whole lives to attain. However, with the great rewards come great risks that can lead us small business owners to financial failures. Below are Ten Issues Startups Businesses Face:
Knowing what your business will be and how you will sell your products or services are not enough to keep it running. You need to have a business plan written out, including (but not limited to) the following:
Starting a small business simply because you want to be rich can lead to an unfulfilling experience, where you will always be looking for schemes that can bring you fortune. Before you do, think first about your own interests and passions. Do you believe you can give something of value to people at large? Are you driven enough to overcome the many inevitable obstacles an entrepreneur will face?
Business startups are gaining increased attention from possible investors and many opportunities are becoming available for startups with low funds looking to jump into the market. There are many different types of investments funds, before jumping the gun ask yourself which type of investment fund is the best fit for your business startup?
There are different types of investment funds and vary based on the level of regulation, objectives, and type of authorized investments. The Investment Company Act (ICA) regulates investment companies. ICA defines an investment company as issuer of securities that is engaged, holds itself out as being engaged, or proposes to engage primarily in the business of investing, reinvesting or trading securities. Generally, investment companies under ICA are heavily regulated and must register with the Securities and Exchange Commission (SEC).
Under the ICA, the main type of investment companies are so called mutual funds, which must register with SEC and comply with other requirements of ICA. In general, any legal entity that sells securities to raise capital, and then invests that capital in other company in which it is not a majority owner, is almost certainly an “investment company” under ICA. However, there are certain exceptions under ICA, in which case, under the ICA, the entity is not considered an investment company and is less heavily regulated.
Small business entrepreneurs usually come into their industries with little to no knowledge of handling the multiple facets of a business such as financial management, employee relations, advertising and other essential responsibilities. Educate yourself through short business and finance courses, or hire managers who have expertise in the fields where you are lacking.
Some entrepreneurs think they will be making profits for their beginning operation cycles, spending most (if not all) of their resources immediately, only to find out later that they will not have enough funds to start the succeeding cycle(s). Consider every possible cost (overhead, production, equipment, etc.) and save enough money that can be used for at least one fiscal year despite poor sales.
It is not enough to set up a store at a location with high human traffic or with a very cheap lease. Opening a restaurant near a school campus can seem like a good idea, but don’t expect too many customers if the food is expensive and there are much cheaper alternatives around.
You need to consider your target market and their habits, as well as the direct competition in the area. Don’t be afraid of spending on prime location, as the increased rate of customers coming into your store and making a purchase will make up for the initial cost.
In this age of high-speed information, people expect to find just about everything on the Internet with their computers and mobile devices. Not having a website or at least a social media page will render your business virtually invisible to a great majority of the world’s population.
You can hire professionals to create a website for you or put up the website yourself. Make accounts for your business on Facebook, Twitter and other leading social media platforms where your target market can usually be found.
Growth is a good thing unless it is left unchecked and your generated revenue can’t keep up with the expansion. If your business experiences great success, do not be overeager to spend your profits by immediately buying more equipment or opening up new stores. Stick to the strategies you have set so you can still grow without bankrupting the business.
Cash is the lifeblood of any business, and there will be no business once that runs out. Therefore, it is imperative that small business entrepreneurs practice strict financial record-keeping so that every penny is duly accounted for. Knowing exactly how much money is going in and out of your business will correctly guide every decision you make.
Having a great business plan will amount to nothing if each objective is tackled with incompetence. Employees who are lazy, dull, bad-mannered and unmanageable will not just cut down on productivity, but will also have a negative effect on the work environment and customer/client relations. Follow strict hiring guidelines and subject your hires to rigorous training to ensure quality output from each one.
A small business needs to market its brand considering the tough competition it will face against more established businesses. You need to invest enough resources into promoting your products through the right channels. This is so your target market knows exactly that you can fulfill its needs. Online marketing is a must these days, but you should not ignore the physical reach of traditional marketing methods such as brochures, flyers and business cards.
Ultimately, it is a matter of planning out your overall strategy, assessing your own strengths and weakness, and keeping a good eye on all of your resources—be it financial or human. Consider each of these possible pitfalls, and you can find your small business not just surviving, but thriving in this competitive world.
A hedge fund is an investment vehicle that pools capital from a number of investors and invests in securities and other instruments. Generally, hedge funds share most, if not all, of the following characteristics:
In order to register a hedge fund under ICA it must fall under an exception of the act. ICA Section 3(c)(1) provides an exclusion from the 1940 Act for any fund that satisfies two requirements: (1) it must not be making or proposing to make a public offering of its securities; and (2) its outstanding securities must be beneficially owned by not more than 100 persons. Founders of hedge funds generally rely on this exception.
Hedge funds can be organized in a number of different structures and jurisdictions. Generally hedge funds are organized as limited partnerships or limited liability companies, which is preferable for tax purposes. Many parties are involved in the day-to-day operations of hedge funds, among which the most important is the Investment Adviser/General Partner. Overall management of a hedge fund, including decisions about portfolio investments, is typically the responsibility of either a general partner or a separate fund manager. Many hedge fund managers are registered as investment advisers under the U.S. Investment Advisers Act of 1940 (Advisers Act), although some exemptions from registration are available. For those interested in learning more can visit The California Hedge Fund Association which was founded to foster the growth and development of the hedge fund community in California.
Advisers Act is the federal statute that regulates most investment advisers doing business in the United States. Generally, investment advisers must register under Advisers Act, unless an exception applies. Where a hedge fund manager is unable, or chooses not, to rely on a registration exemption, it must register as an investment adviser, either with the SEC or a state. Advisers whose activities are deemed to be more national in scope, that is, those with $100 million or more in assets under management, as well as those in states that do not regulate advisers, must register with, and will only be subject to the regulations of, the SEC.
In general, investment advisers are responsible for recommending or selecting, based on discretionary authority, portfolio investments in accordance with their client's objectives and policies. Frequently, investment advisers place portfolio orders with broker-dealers and are responsible for ensuring best execution of client transactions. Even if investment advisers are not registered under Advisers Act, they are subject to a number of Advisers Act provisions, most notably the antifraud provisions and certain additional reporting requirements.
Although hedge funds do not need to register with SEC, hedge fund managers need to comply with a host of special reporting, disclosure, privacy and information-protection requirements. Many of these requirements are in addition to those imposed on registered fund managers by Advisers Act, and include regulatory reporting requirements, providing information to investors, privacy and information-protection requirements. Depending on investment activities, fund managers may be subject to record-keeping or reporting requirements of SEC and other regulatory authorities, such as the U.S. Department of the Treasury, the Commodity Futures Trading Commission, the Federal Trade Commission and others. Fund managers investing in non U.S. securities also must be cognizant of any similar requirements under foreign laws and regulations that may apply.
Private funds do not need to register with SEC if they fall under an exception of ICA. By structure and registration rules other private funds are similar to hedge funds. A common type of private funds are private equity funds. A private equity fund generally invests in non-public companies. Many variations of private equity funds exist, including venture capital, leveraged buy-out and mezzanine financing funds.
Private equity fund, the fund manager typically seeks capital from a number of sophisticated or institutional investors in the form of "capital commitments," which are generally fairly substantial in size, such as $5 million or more from each investor. Unlike the typical hedge fund, which accepts additional investments from investors throughout the fund's life, a private equity fund is generally a closed-end vehicle, meaning that after one or more fundraising stages, or “closings”, new investors are not accepted.
Unlike hedge funds or registered funds, which usually invest mainly in liquid, publicly traded securities, a private equity fund typically acquires large blocks of privately placed, generally illiquid securities from issuing companies. A private equity fund's success depends upon its portfolio companies increasing in value, often substantially, after several years and the fund being able to dispose of its holdings.
Small business investment companies (SBIC) are federally licensed entities employing, in part, federal funds and are subject to broad regulatory control by the U.S. Small Business Administration (SBA). A licensed SBIC is an incorporated entity, organized and chartered under state law solely for the purpose of supplying equity capital on long-term loans to small business concerns, providing consulting and advisory services, and investing funds not reasonably needed for current operations in various limited kinds of obligations. SBICs must only invest in small businesses.
In order to become a SBIC the entity must be licensed by the SBA. Prior to filing a license application, SBIC applicants must raise the greatest of the following three minimum capital requirements:
Hedge funds are probably the least regulated investment funds. Hedge funds do not have to register with SEC, although investment advisers, who are generally the managers of the fund, might have to register with SEC. On the other side, hedge funds allow greater flexibility in investments which makes this investment vehicle even more attractive.
Yes, you can call our business lawyers from KAASS LAW at 310.943.1171 if you have any further questions or to comment on how great this blog was. This content is intended for educational purposes only.