Financing your Business - Legal Aspects




Financing a Business. When starting any business, obtaining financing can often be one of the most important and challenging tasks. There are many ways for businesses to obtain start up capital or operating funds, but many of these options include legal consequences that business owners often fail to consider in advance.

What kind of financing is right for your business? From angel investors to crowdfunding, to loans and stock sales, there are a multitude of different funding options available. But, some require the business to give up a portion of its ownership and control, some require strict adherence to strict regulatory rules, and others may have significant financial consequences.


Financing Your Business

  • Business Financing FAQ

    Some of the most frequently asked questions about raising money for your small business.

  • Business Financing Options

    Information about forms of business financing for an initial investment or to solve financial problems of companies looking for finance to grow or those that are going through a bad phase financially.

  • Financial Assistance - SBA

    The U.S. Small Business Administration (SBA) provides business loan information for borrowers and for prospective lenders.

  • Financing & Funding

    Explore a variety of funding alternatives, including self-funding, angel funding, venture capital, grants, conventional loans, and special loan programs spsecifically for small businesses.

  • Resources to help entrepreneurs plan, start and finance small businesses
  • Small Business Guide to Government Grants and Loans

    The U.S. government does offer a wide-variety of low-interest loans and venture capital financing programs to help entrepreneurs start and grow their businesses.

  • Small Business Loans & Grants

    Federal, state and local governments offer a wide range of financing programs to help small businesses start and grow their operations. These programs include low-interest loans, venture capital, and scientific and economic development grants.

Articles Related to Business Finance

  • Transfer Agents in the Going Public Process
    Transfer agents play a key role in the going public process. Transfer agents are the record keeper for a company’s securities when it goes public. Share ownership is reflected on the issuer’s shareholder list. In addition, transfer agents issue and cancel certificates to reflect changes in the ownership of securities and act as an intermediary for the company and its stockholders during the going public process.
  • Accredited Investors l Rule 506 Requirements
    Regulation D under the Securities Act of 1933,as amended (the “Securities Act”), sets forth a safe harbor from the registration statement requirements of the Securities Act for certain private placements of securities. In connection with these exemptions, offerings made in reliance upon Regulation D, Rule 504, 505 and 506 can be made to up to 35 non-accredited investors and an unlimited number of “accredited” investors.
  • Section 4(1) Exemption
    Rule 144 (“SEC Rule 144”) under the Securities Act of 1933 (“Securities Act”) provides a safe harbor from the registration provisions of the Securities Act for resales of restricted and control securities by persons other than the issuer if all conditions of the rule are complied with.
  • Form 8K Reporting of Reverse Mergers
    The Securities and Exchange Commission (“SEC”), Division of Corporate Finance frequently notes disclosure deficiencies in the disclosure of reverse merger transactions in on 8-K Filed. This post summarizes SEC staff comments in response to reports on Form 8-K reporting of reverse mergers with public shell companies or similar transactions that result in a public company no longer being designated as a shell company.
  • US Listings For Foreign Issuers
    Typically, foreign companies seeking to raise capital attempt to obtain public company status. Foreign companies that go public in the U.S. may complete a public offering by registering securities with the Securities and Exchange Commission (“SEC”) under the Securities Act of 1933, as amended (the “Securities Act”) or by registering a class of securities under the Securities Exchange Act of 1934 (the “Exchange Act”).
  • OTCMarkets OTCQX l Dual List USA
    The OTCMarkets OTCQX offers foreign issuers seeking to go public in the U.S. an appealing alternative to listing on a stock exchange. Foreign issuers whose securities are listed on a foreign stock exchange that qualify for the exemption from the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
  • Private Placement Memorandums 101
    A private placement memorandum (“PPM”) is also referred to as a confidential offering circular or memorandum. PPM’s are typcially prepared by securities lawyers who assist private companies with their going public transactions. PPM’s are used to raise capital by selling either debt or equity in an exempt offering that has not been registered with the SEC. These exempt offerings are often called private placements.
  • SEC Registration Statements l Question & Answer
    Addressing the most common questions we receive about going public using Form S-1 and the SEC registration statement process.
  • Section 16 Reporting
    Shareholders and management of private companies are often unaware of their reporting obligations upon completion of a going public transaction. Section 16(a) of the Exchange Act of 1934 (the “Exchange Act”) requires the reporting of beneficial ownership by the officers, directors and stockholders who hold stock directly or indirectly, beneficially owning more than 10% of the company’s common stock or other class of equity securities registered under Section 12(b) or 12(g) of the Exchange Act.
  • The JOBS Act’s Amendments to Form D
    On July 10, 2013, the SEC adopted final rules as required by Title II of the JOBS Act, which directed the SEC to eliminate the ban on general solicitation and advertising for certain offerings conducted under Rule 506 of Regulation D, of the Securities Act of 1933, as amended (the “Securities Act”) provided the securities are sold only to accredited investors.

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