Business

As founders look to raise capital, Simple Agreements for Future Equity (SAFEs) present a streamlined option. However, like any financial instrument, SAFEs come with their own set of risks. Understanding these risks is vital for making informed decisions and protecting the future of the business. 1. Valuation Cap Uncertainty SAFEs come in different forms. One …

What are the Risks of a SAFE? Read More »

The FTC, relying on Section 5 and Section 6(g) of the FTC Act, issued a final rule on April 23, 2024 banning the use of non-competes nationwide. The ban will go into effect 120 days after the publication in the federal register (note that publication has not happened yet and the predicted effective date will …

New FTC Rule Banning Noncompetes Read More »

A lot of folks accidentally dox themselves, typically when they’re setting up a limited liability company (LLC) or corporation (or when purchasing property or filing for trademarks, though this post focuses on corporate records). Why is that? When setting up a business, different states have different disclosure requirements. Some, such as Delaware, might only require …

How people accidentally doxx themselves by setting up a business. Avoid these mistakes. Read More »

In our first overview of corporate formalities and meetings we looked at corporate formalities that help to preserve corporate liability protections. In part two, we look at meetings specifically, including the types, procedure, and substance of meetings.  Types of meetings At a high level, there are shareholder meetings and there are board meetings. Corporate bylaws …

Corporate Formalities and Meetings 101, Part 2 Read More »

Tax years beginning after 2022 brought with them an uncomfortable change for many in the video game industry. Section 174 of the Internal Revenue Code, which previously allowed taxpayers to immediately expense their research and development expenses, now required taxpayers to capitalize and amortize those expenditures over a five- or even fifteen-year period. For many …

Understanding Section 174 Tax Code Changes Read More »