Once a company has been formed as a corporation and put the right protective agreements in place, one of the next foundational decisions is how to structure its initial equity. How many shares should the company authorize? How should those shares be divided among the...
For many startups, the most valuable assets are not tangible ones, like equipment or inventory, but intangible ones, like ideas, know-how, branding, and customer information. Securing your intellectual property (IP) and confidential information from day one preserves...
This is Part I of KJK’s “Startups 101” series. One of the earliest legal decisions a founder makes is what kind of entity to form and in which state to form it. That choice affects taxation, governance and future investment. Entity Types For most startups, the...
The State Medical Board of Ohio, the Ohio Board of Pharmacy and the Ohio Board of Nursing (collectively, the “Boards”) have recently issued a Joint Regulatory Statement addressing the operation of retail IV therapy clinics in Ohio. The Boards’ statement comes in...
Last month, the SEC issued a No Action Letter interpreting Rule 506(c) that effectively provides a streamlined path for private fund sponsors to conduct an exempt general solicitation offering pursuant to Regulation D of the Securities Act of 1933. The guidance...
Earlier this week, the financial services company Robinhood, which caters to retail investors, rolled out its derivative market for trading on the outcome of the upcoming United States presidential election. These trades are an example of “event derivative trading,”...
Elon Musk's Ventures and Controversies Elon Musk is well known for his many ventures as well as his disdain for convention. While serving as the CEO of Tesla, Inc., Musk acquired Twitter (now X Corp.) and founded a private AI-focused company, X.AI Corp. (not to be...
On June 27, 2024, the United States Supreme Court issued a landmark decision in SEC v. Jarkesy, ruling that the Securities and Exchange Commission’s (SEC) use of in-house tribunals for civil penalties in securities fraud cases violates the Seventh Amendment’s...
In 2015, the Securities and Exchange Commission (SEC) inaugurated Regulation A+, an expansive amendment to the existing Regulation A exemption of the Securities Act of 1933 (Regulation A). The amendment made Regulation A a more practical alternative to registered...
Recently, the Securities and Exchange Commission filed a complaint against Curt Kramer and three companies owned by Kramer, 1800 Diagonal Lending Company, LLC, Power Up Lending Group, Ltd., and Geneva Roth Remark Holdings, Inc. (Securities and Exchange Commission v....