SEC Proposes Rule Changes That Will Enable Entrepreneurs to Raise More Capital at Lower Costs

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By Mark T. Hiraide

This week, in a nearly 300-page release, the Securities and Exchange Commission proposed significant changes to its rules applicable to online equity crowdfunding and other securities offerings that are exempt from SEC registration.

These kinds of offerings generally are most advantageous to smaller and emerging companies that have limited funds to spend on raising capital. Last year, exempt securities offerings accounted for an estimated $2.7 trillion (69.2%) of new capital, compared to $1.2 trillion (30.8%) raised through SEC-registered offerings.

If adopted, the proposed changes will enable entrepreneurs to raise more capital through exempt offerings and simplify certain complex rules, thereby reducing legal costs associated with funding a business. The changes also will continue provisions to protect investors, especially individual retail investors. Continue reading “SEC Proposes Rule Changes That Will Enable Entrepreneurs to Raise More Capital at Lower Costs”

Visa Options for Foreign Investors and Entrepreneurs

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By John E. Exner IV

Many U.S. startups are co-founded by foreign nationals, and for those that are not, all start-ups need capital. Fortunately, it is not necessary to limit the potential investor pool exclusively to U.S. citizens and permanent residents. A large number of U.S. startups are either co-founded or funded by foreign investors, and the U.S. government understands that in order to attract foreign investment into the U.S. economy there must be designated visa categories available to those investors. These specific visa categories were established to allow investors and co-founders to travel to the U.S. to manage and oversee their investment. While a wide variety of visas may be applicable to any situation, the two most common visa categories utilized by foreign investors and entrepreneurs are the E-2 and the L-1A “new office” visa. Continue reading “Visa Options for Foreign Investors and Entrepreneurs”

Immigration Tips for Startups

By John E. Exner IV

10 tips to prepare for the most frequent immigration scenarios faced by startups:

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  1. If the company will be owned, in-whole or in-part by a foreign investor, immigration planning should start as early as possible – even before the company is established. There are visas available to foreign entrepreneurs who are investing a significant amount of money into a new U.S. business. This visa application process should be handled in concert with the creation of the business.
  2. If the U.S. business will have a foreign office (parent, subsidiary, or affiliate) the managers, executives, and essential personnel from the foreign office(s) may be able to travel to the United States on multinational transferee visas.
  3. If the U.S. business is recruiting from local U.S. universities and colleges, many of these candidates may be foreign nationals on U.S. student visas. These individuals may be eligible for at least one year of employment authorization in the U.S. following graduation. Continue reading “Immigration Tips for Startups”

Intellectual Property Tips

By Emily F. Evitt

Here are 10 ways to build a rock-solid foundation for your new company and avoid constructing a masterpiece on top of quicksand:

  1. Make sure your company’s name isn’t already taken. As a starting point, search the name on Google and other Internet search engines. Then search the U.S. Patent and Trademark Office website (uspto.gov). Important: repeat this process each time you pick the name of a new product or service.
  2. Check if the domain name you want is available – if so, get it. Create Twitter, Facebook and Instagram accounts for your company, and start using them. Continue reading “Intellectual Property Tips”