CorporateDIrect FullLogoWhiteLetter

800-600-1760

Are You a California Resident?

Are You a California Resident?

Many people believe that as long as they are outside the state of California for six months and a day they are not residents of California. And thus don’t have to pay California’s high income taxes. But the state of California is both broke and arrogant. And they make the rules the way they want.

Design Your Asset Protection Plan

Design Your Asset Protection Plan

You design a lot of things in your life. The layout of your house, the flow of your business, the requirements on your children, and many more scenarios are all elements of conscious design. Asset protection is no different. There is an architecture, a cohesive...

Corporate Opportunities

Corporate Opportunities

Does the Rule Apply to Real Estate? If you invest in and/or syndicate real estate what are the duties to your investors? You owe them a duty of loyalty. But how far does that go? The issue of corporate opportunities is important. I wrote a whole chapter on it (from...

Is a Venture Capital Firm Right for You?

Venture capital firms are a useful component in the business engine of growth. They are also hard-nosed investors who have earned the not so flattering nick name ‘vulture capitalists’. When it comes to ‘VCs’, you need to be knowledgeable and cautious.

A venture capital firm is a company that raises large amounts of money from individuals and institutions and then invests in startup businesses. Because these firms don’t do anything else, they are very interested in the finances of the businesses in which they invest – so much so that they will usually want significant ownership in the company (and possibly a seat on the board or a place in management) with input on day-to-day decisions.

Members of venture capital firms are big on profits and big on growth. Some want to triple their money in 18 months. Others want even greater returns. To do that they’ll need a large chunk of your shares and they’ll drive your (their) company with the accelerator past the floorboard. In achieving their goals, they’ve left many a founder behind at the rest stop. Of course, being left behind with 10% ownership of a company whose stock is soaring may not be such a bad result for some. But for others it can be bruising.

Be sure to talk to your advisors and other clients of the venture firm you are considering before formalizing a relationship. In many cases a venture firm can be a big help, in others a major hindrance. Be careful.

Are You a California Resident?

Are You a California Resident?

Many people believe that as long as they are outside the state of California for six months and a day they are not residents of California. And thus don’t have to pay California’s high income taxes. But the state of California is both broke and arrogant. And they make the rules the way they want.

Design Your Asset Protection Plan

Design Your Asset Protection Plan

You design a lot of things in your life. The layout of your house, the flow of your business, the requirements on your children, and many more scenarios are all elements of conscious design. Asset protection is no different. There is an architecture, a cohesive...