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
- When a Business Folds, Who Is Responsible for Its Debts and Other Obligations?A common question among small business owners is who will be responsible for debts and other obligations if a business entity folds or reorganizes. Many things can happen in the life of a business entity, whether a corporation, LLC, partnership, or sole proprietorship, and this can lead to questions about who will be left holding the bag.
- The Fallout of Arthur Andersen and Enron on the Legal Landscape of American AccountingIt may have been a decade ago, but the fallout of the accounting scandals of the late 1990's and early 2000's continue to resonate through both of the accounting and legal professions. The largely self-regulated accounting profession has enacted numerous changes that continue to evolve in response to the scandals and pressure from government agencies and the public.
- State Shuts Down Crowdfunding Website SoMoLend in OhioSince the JOBS Act became law, numerous crowdfunding websites have popped up on the Internet. This month, the first enforcement action was brought against a crowdfunding website.
- Crowdfunding, Crowdinvesting, Kickstarter, and the JOBS ActIn 2012, the US federal government passed a bill called the JOBS act. Among its provisions was one allowing for small investments in exchange for equity in that company or project without having to go through the SEC or qualify as an investor. What is the difference between crowdinvesting and crowdfunding, what is Kickstarter, and how does it all work from a legal standpoint?
- OTCMarkets TiersUnlike securities listed on stock exchanges such as NASDAQ or the NYSE, securities may trade through the OTCMarkets interdealer quotation system whether they are Securities and Exchange Commission (“SEC”) reporting issuer or not.
- Going Public Options for Foreign CompaniesGoing Public Options for Foreign Companies
- How Finra Rule 6490 Impacts Going Public TransactionsSmooth Sailing for Companies Avoiding Reverse Mergers in their Going Public Transactions.
- IPO Prospectus DeliveryUnder the Securities Act of 1933 as amended (the “Securites Act”), a Company that conducts an initial public offering (“IPO”) including in a going public transaction must adequately disclose material information to investors.
- The SEC Registration ProcessThe offer and sale of securities is regulated by the Securities Act of 1933, as amended (“1933 Act”). Section 5 of the 1933 Act requires any offering to be registered with the SEC or exempt from registration.
- Form 10 Shells l Reverse MergersIssuers seeking to raise capital often attempt to go public using a reverse merger with a public shell. Blank check companies that file Form 10 Registration Statements (“Form 10 Shells”) are marketed as handy vehicles private companies can use to go public easily.