In our last post “Coming to America Part I,” we discussed why emerging companies would choose enter the US market to do business. In this post, we will discuss the many interrelated legal and cultural factors non-US companies must consider in order to establish a successful US presence.
As of late, many emerging companies have decided to enter the U.S. market. While international expansion is an important Ubusiness milestone, there are multiple legal and cultural considerations companies must reflect on. In this two part series, we will discuss why companies choose to come to the United States to do business and what companies need in order to do business in the United States.
For entrepreneurs who want to set up a company and avoid double taxation (i.e., taxation of amounts earned by the company and then taxation of the owners when they receive payments from the company), the choice often comes down to using an S-corporation or LLC (limited liability company). What if the entity could be both?
Security breaches have become all too common, and cyberattacks are not limited to the assaults on big companies that are reported in the news. With the global economic cost of cybercrime totaling more than $400 billion per year, cybersecurity has become a priority for executives and board members. Companies of all sizes across all industries should be thinking about how to better safeguard their data.
As we discussed in our inaugural posts in this series, after management, the most valuable asset for most startups can be their intellectual property (IP). And as such, it is important for a startup to own its intellectual property. That sounds simple enough, right? Wrong!
In the early stages of a startup, individuals typically collaborate informally to develop their ideas and a business plan. A company may not be formed yet. There may be no formal agreements among the individuals. Additionally, some of the collaborators may be employed by other companies while waiting for the startup to launch. As part of employment with such companies, certain collaborators may be obligated to assign his or her contributions intended for the startup to their current employer. Without any formal agreements or even a formal entity to own IP, any IP generated or derived from an informal collaboration may be owned by individuals personally or worse yet, depending on the circumstances, by another company. Every potential investor or acquirer will perform due diligence to make sure that all of the company’s IP is owned by the company. From the outset, every startup needs to consider these ownership issues which can cause barriers to funding or acquisition or otherwise limit valuation in the future. Continue reading this entry