Delaware? Don’t Do It.

Most people should not incorporate or organize their entity in Delaware. Now, I know that many advisers recommend organizing in Delaware and there are times when it is appropriate. Delaware has created and refined well-designed statutes and efficient, professional courts to make it easy, predictable and respectable to form…

5 Reasons Venture Capitalists Demand a C-Corp

Forms. The holy grail of cheap legal fees is standardized forms. VCs have their own contract forms for investments in C-Corporations and they want to keep it that way. It is more efficient for them to use their own forms: their lawyers can get through them and the VCs…

The 4 Types of Entities (sorry, it’s pretty dull)

Everyone always wants to know: which entity should I pick? Let’s try and answer that once and for all. Here, we’ll talk about the types of entities. Down the road, we’ll talk about how to think about them. First, you should know that all business entities are creatures of…

Yes, Your Business Needs An Entity

You absolutely need an entity. Here’s why.

Why People Organize in Delaware (and Why You Shouldn’t)

I’m starting to get lots of emails asking business law questions, so I thought I’d start a weekly column where I answer one. Here is our first question. Katie from Cincinnati, Ohio asks, “Why are there so many corporations from Delaware?” Dear Katie: Before you can set up a…

Business Entity Lingo

  Different entities use different words to describe owners and management… click here to see a table:

Sole Proprietorship: Just Don’t

People who run a business alone without setting up a formal business entity operate their business as a sole proprietorship. They shouldn’t.