Tag: financing

Get Financing but Don’t Lose Control of Your Company

Written by JGPC Business Law on March 15, 2017.

How you choose to finance your new business venture can have a dramatic impact on the type of entity you use for the venture, the structure of that entity and the direction your company takes in the first few weeks and months of its existence. Companies that are funded entirely by you and/or your close friends and family members will operate in a dramatically different way than one that is funded by outside investors. Similarly, a company funded by the entrepreneur or owner (or his or her family...

What is 506(c) Offering and What Does It Mean for Financing Your Company?

Written by JGPC Business Law on March 7, 2017.

A New Day for Startups Seeking Capital The Jumpstart Our Business Startups (JOBS) Act of 2012 was designed to assist startups – especially new small businesses – in obtaining capital without having to comply with some of the restrictions that the Securities and Exchange Commission (SEC) had put in place governing other types of transactions. However, a 506(c) offering may or may not be the best method of raising capital for your new business. Benefits of 506(c) Offerings in General The new Rule...