Many founders of small companies and social enterprises will be asked to Guaranty service contracts or engagement agreements with consultants or contractors. This should raise some key questions before any founder or small business owner puts themselves, and their assets, on the line for these relationships. The concept of the personal guaranty is not a …
Personal Guaranties and Service Contracts – A thorny legal issue Read More »
As we’ve previously explained on this blog, several states have adopted legislation accommodating legal structures for businesses that make a social impact. For example, Maryland, New Jersey, Hawaii, Vermont, California, New York, and Virginia and have passed statutes authorizing Benefit Corporations. And Illinois, Louisiana, Maine, Michigan, North Carolina, Rhode Island, Utah, Vermont, Wyoming have passed …
The “Social Purpose Corporation” passes the Washington State House of Representatives Read More »
In response to the great article on forbes.com detailing the 5 mistakes of the Empire in Star Wars, I present the top 3 reasons that the rebels were able to take advantage of these mistakes, and achieve victory over the Emperor. Because this Blog spends a good deal of time looking at Social Entrepreneurship and …
Star Wars – Three Keys to the Alliance Victory Over the Galactic Empire Read More »
For Companies seeking to raise seed capital, or going out for investor financing, it is important to make sure your Executive Summary is well put together Executive Summaries are documents companies use when they begin to try to raise money and are used whether a company is pursuing early-stage start-up financing or later capital infusion. …
Trying to Raise Capital? Seven Things Every Executive Summary Should Include Read More »
Many companies seeking investor capital retain professional service providers to put together financial projections and other information about the company, evidencing why the company is poised for growth and deserving of investor funds. It is important that management understand these financial projections, and are able to explain them in detail, as investors dig deeper into …
The Importance of Understanding Your Company’s Financial Projections Read More »
Ever wonder what it means to be a social entrepreneur? Well, I found some great video to demonstrate what it means. This link will take you to an episode of ABC’s hit show “Shark Tank.” In this episode, Donny McCall makes a pitch for his product and company called Invis-a-Rack (after the commercial, jump to …
An example of Social Entrepreneurship from NBC’s Shark Tank Read More »
As more social enterprises seek to obtain investment capital to help grow their business, it is important for Officers, Directors, and Founders to identify potential liabilities, and deal with them, before seeking financing. Many early stage companies have known outstanding liabilities facing them that must be addressed prior to raising investor capital. Whether it’s a …
Before Raising Money – Identify Your Liabilities Read More »
As most people following the social enterprise world are aware, legislation has made its way through several states allowing for the formation of a hybrid business structure called the Benefit Corporation. A Benefit Corporation is a unique entity structure as it represents an attempt to bridge the gap between the for-profit and non-profit worlds. Benefit …
I walked out of the conference room feeling great. We had just hammered out a settlement dismissing a breach of contract lawsuit against our client. The settlement terms were fair, and I was especially pleased because, at the time, I thought the chance that these particular parties would come to an agreement was slim. Then …
Boilerplate considerations: when to have an attorneys’ fees provision in your contracts. Read More »
The L3C (Low-profit Limited Liability Company) is a for-profit business entity that, as required under its organizing documents and state law, must have a primary goal of performing a socially beneficial purpose instead of simply maximizing profit. In addition, an L3C must avoid engaging in certain lobbying and political activities. Otherwise, an L3C is organized …
What is a “Low-Profit Limited Liability Company” (L3C)? Read More »