CONTENT CENTER

Essential Annual Actions for Start-up Boards
Grow Your Company, Articles Sophia Fein Grow Your Company, Articles Sophia Fein

Essential Annual Actions for Start-up Boards

As a founder of a start-up, you have your hands full, and the end of your start-up’s fiscal year can sneak up on you. But, as the year-end approaches, you should be mindful of a few key actions your start-up board will want to consider on an annual basis. In this article, we’ll walk through the most common annual actions to be approved by start-up boards at their meetings held around the end of the fiscal year: the budget, compensation, including bonuses and equity awards, and other administrative action (including, the appointment of auditors and ratification of officers). Keeping your board engaged on these crucial items yearly will allow the board to see that you are capable of leading all aspects of the business, including in the area of corporate governance, and will ensure you receive valuable guidance and feedback from your directors.

Read More
Section 409A Valuations: Mastering the Art and Science in a Volatile Venture Market
Articles, Build Your Team Dinesh Melwani Articles, Build Your Team Dinesh Melwani

Section 409A Valuations: Mastering the Art and Science in a Volatile Venture Market

Within the unpredictable landscape of start-ups and private companies, market volatility can significantly alter a company’s financial trajectory. An integral part of navigating this volatility is understanding the role and function of Section 409A[1] valuations. These valuations, which play a critical role in the financial and tax planning strategies of organizations, serve as an independent measure of a company’s common stock value. In this article, we explore the intricacies of Section 409A valuations, focusing on their importance, timing, and methodologies, and offer strategies for engaging with third-party firms to achieve a valuation that most closely aligns with your company’s worth.

Read More
Considering Converting an LLC into a Corporation? Here Are the QSBS Issues You Should Be Thinking About.
Articles, Form a Company Guest User Articles, Form a Company Guest User

Considering Converting an LLC into a Corporation? Here Are the QSBS Issues You Should Be Thinking About.

A common question we receive from founders is whether to organize their start-up business as a corporation or as an LLC . While there are many non-tax related factors that need to be considered, this is often (at least in part) a tax driven decision. Organizing the business as an LLC can come with certain tax advantages, such as avoiding an entity level corporate tax and, subject to various limitations, permitting founders to use losses generated by the business and passed through on their Schedule K-1 to offset their other income. Alternatively, while organizing the business as a corporation results in an entity level corporate tax and precludes the pass-through of losses, it may permit the founders to access the “qualified small business stock” (QSBS) rules of Section 1202 of the Code.

Read More
IRS Issues Notice 2023-44 Clarifying the 48C Program Application Process and Timeline
Articles Guest Contributor Articles Guest Contributor

IRS Issues Notice 2023-44 Clarifying the 48C Program Application Process and Timeline

On May 31, 2023, the Department of Treasury and the Internal Revenue Service released Notice 2023-44 to provide additional guidance on Section 48C, a revised and expanded allocation-based investment tax credit for qualified investments in eligible qualifying advanced energy projects. The Notice modifies and clarifies Notice 2023-18, which was released on February 13, 2023 and provided detailed mechanical guidance on applying for allocations of the Section 48C Credit

Read More
Benefits and Legal Risks of Embracing Generative AI Applications
Articles Guest Contributor Articles Guest Contributor

Benefits and Legal Risks of Embracing Generative AI Applications

One of the industries that can be transformed by generative AI is the legal industry. The revolutionary tools powered by generative AI raise many questions: will the legal industry prohibit or embrace this technology? If it embraces the technology, what will adaptation look like in practice? And, it even poses an existential question – does it have the potential of making lawyers obsolete?

Read More
Board Warns Employers to Pare Back Overbroad Non-Disparagement and Confidentiality Provisions in Severance Agreements
Articles, Build Your Team Guest Contributor Articles, Build Your Team Guest Contributor

Board Warns Employers to Pare Back Overbroad Non-Disparagement and Confidentiality Provisions in Severance Agreements

Severance agreements offered to non-supervisory employees that include broad-based non-disparagement and confidentiality provisions are unlawful according to the National Labor Relations Board. The Board’s decision in McLaren Macomb, 372 NLRB No. 58 (Feb. 21, 2023), reverses Trump administration era Board decisions on this issue, and if upheld, may have far reaching consequences for both unionized and non-unionized workplaces.

Read More
New York State Offers Matching Investment Funds for Qualified Early Stage Start-Ups
Articles, Raise Capital Sam Effron Articles, Raise Capital Sam Effron

New York State Offers Matching Investment Funds for Qualified Early Stage Start-Ups

New York Governor Kathy Hochul recently announced the establishment of a new initiative to match up to $30 million in funding received by early stage companies operating in New York. Through the Pre-Seed and Seed Matching Fund Program, start-ups could receive $50,000 to $250,000 to match investments in the form of convertible debt, a Simple Agreement for Future Equity (SAFE), or equity securities.

In this alert, we provide an overview of the program and its eligibility requirements.

Read More
Extending for Success: The Rising Trend of Extension Rounds and the Importance of Due Diligence
Articles, Raise Capital Guest Contributor Articles, Raise Capital Guest Contributor

Extending for Success: The Rising Trend of Extension Rounds and the Importance of Due Diligence

In light of a slowing market, companies that have already secured venture capital funding are increasingly resorting to extension rounds as a means of obtaining additional capital in an attempt to avoid a down round financing and extend their runway until the fundraising environment improves. Extension rounds can provide several strategic benefits for startups.

Read More
Do You Have The Rights? How to Maintain Investor Confidence When Using Third-Party Intellectual Property
Articles, Grow Your Company Bertie Magit Articles, Grow Your Company Bertie Magit

Do You Have The Rights? How to Maintain Investor Confidence When Using Third-Party Intellectual Property

Imagine the following scenario: You, as the founder of a business, have spent the past three years building your company. You have been bootstrapping until now, but the company is at a crossroads and in order to grow the company to its full potential, you have decided to turn to venture capital to attract additional funding. Because yours is a younger company, and therefore a riskier investment, your potential investors have decided to conduct thorough due diligence to allay some of their concerns. You suddenly think about the third parties whose intellectual property your company uses in its regular operation – you paid for access to that intellectual property so you are free to use it however and whenever you want, right?

Read More

Sort by Topic:

Form a Company

Form a Company

Raise Capital

Build Your Team

Build Your Team

Protect Your Idea

Protect Your Idea and Data

Grow Your Company

Exits

Exits

View our full collection of blogs from Mintz by topic