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Showing posts with the label USA

Stock Purchase Agreement - All You Need to Know (US Law)

This guide is made in consonance with U.S. Law, which in this case, is the Securities Act of 1933. This is an informational post to help entrepreneurs and is not legal advice. Guide contents - What is a stock purchase agreement? The Purpose of a Stock Function Agreement When You Need to Use this Agreement When You Need Not Use this Agreement Essential Components of a Stock Purchase Agreement Instances when a Stock Purchase Agreement can be Used How to File a Stock Purchase Agreement Mistakes to Watch Out For Format of a Stock Purchase Agreement Stock Purchase Agreement Overview A stock purchase agreement is a contract signed by two parties when they buy or sell stock in a corporation in the US. Small firms that sell stock frequently use these agreements. Stock can be sold to buyers by either the corporation or its shareholders.  A stock purchase agreement is intended to safeguard you and your financial transaction, whether you are the buyer or the seller from unwanted legal outcomes. H

How to Incorporate Your Startup into an LLC (in 9 Steps!): in the US

 Going after a business idea is no easy task. You have to fight the competition, grab hold of market position and solidify your startup as a powerful player in the market.   However, one mistake most entrepreneurs often make is that they go after all this, without incorporating their startup.   In the high-stakes US business environment, no competitor is willing to grant you any place. And, for that reason they are ready to sue you for the slightest legal grey area that you may tread on, a common instance being trademark infringement .   For such reasons, having an incorporated business means that your personal property escapes all and any form of liability in civil suits.   There are several legal business structures that you can go for. But, LLC is a preferred choice due to the ease of formation as well as the tax benefits that it offers to its members. Before we begin: While this post offers you all you need to know for registering an LLC, if you need state-specific help or

LLP vs LLC Taxation: Which Gets Better Taxation in US?

So you have a business in mind, or are probably running a business in the form of a sole-propreitorship. Now, you want to incorporate it. Well, that's a smart choice. Incorporating a business lets you avoid all the legal liabilities that may arise! It becomes the liability of the business structure based upon the organization that you have chosen. There are several business legal structures in the US and the choice of going with one than the other should be based upon a number of factors, chief among them being, the type of business you operate. Second in that list of important factors to consider, is the matter of taxation. As a business owner, it is important that you pay careful attention to your business' finances and ensure the cash outflows are kept to a minimum . This also means you need to ensure your business pays the least tax legally possible. For that reason, two of the business organizations most favoured by startups are Limited Liability Companies and Limited Lia

LLP vs LLC: Which One Should You Go For in the US?

Limited liability companies (LLCs) are a form of corporation with its liability limited. It may be considered as a toned down version of corporations. Usually large LLCs get turned into corporations.  While corporation is a favourable business structure for high growth businesses, they also involve more paper-work and compels you to put more information about your company, in public.  That's why if you are just starting out LLP and LLCs are the most favourable business structure, until you achieve and are able to sustain a high revenue, growth rate and investments into your business. Limited liability partnerships (LLPs) are a favoured choice for business owners in the US as it has a unique way of combining key elements of corporations and partnerships and offers the best of both worlds for small businesses.  Although there are some mammoth businesses operating this legal structure, for example, consulting firms and law firms, these are usually the preferred choice of operation for