Daily Archives April 15, 2015

Forming a Corporation – Investors

Forming a Corporation – Investors

by: Richard A. Chapo

You’ve come up with the best idea since sliced bread, figured out a business name and formed a corporation. There is, however, one small problem. You need money. Welcome to the world of investing.
Business Funds
Unless Bill Gates is your friend, money is going to be a problem for every new business. Even the might Google had to hunt for cash with one of the founders of Sun Microsystems finally kicking down a much needed $100,000. Whether you decide to pimp your business plan to anyone breathing or beg your step-mother for funds, here are some issues to consider.
Investors are looking for the best deal, to wit, the most stock possible in an entity. If you are asking them for cash, they have the leverage. Don’t be so desperate that you give away the farm. All to often, I speak with individuals who started a business on a whim and have become disillusioned because they have lost equity in the business.
Assume I start a corporation and need funds. My neighbor agrees to kick in $20,000 for 20% of the stock. Things go great, but four months later I need another $50,000 for inventory and cash flow. My aunt agrees to kick in $50,000 for another 20% of the stock. Yikes, I am not even through the first year and I have given up 40% of the equity!
What happens in year two when I need a $100,000? I give up more stock and suddenly own less than 50% of the business. Inevitably, this leads to feelings of resentment and bitterness. “It was my idea, but now these blood suckers are going to get most of the money and they aren’t even working on the business.” This sentiment is so common that it would be laughable if it weren’t so depressing.
As a general rule, you should only sell ownership in a business as an absolute l...

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The Prenuptial Agreement Dilemma

The Prenuptial Agreement Dilemma

by: Jeffrey Broobin

Should we have a prenuptial agreement?
OK. You can look at the idea as very cold and unromantic. You can look at the idea as a considerate and practical way to decide before the marriage certain issues having to do with your money.
It is interesting to note that the custom of creating prenuptial agreements is not the modern invention that it seems to be. During the 19th century, before the Married Women’s Property Act of 1848, prenuptial agreements were necessary for women in the United States. Until the act became law, everything a woman owned or inherited was transferred to her husband. If he died or divorced her, she was just out of luck.
Nowadays it is not so uncommon to execute prenuptial agreements. And these are not just for the famous super-rich couples we read about, where one spouse is much richer than the other. These are couples who want to be upfront about financial issues and get that out of the way before the wedding.
A prenuptial agreement is a signed and notarized contract that describes how a couple will handle the financial aspects of their marriage. The prenuptial agreement has many positive benefits that are not related to divorce, and although it is not very romantic, it has many positive elements.
• If a future spouse won’t sign a prenuptial agreement, it may be best to discover this before the wedding.
The financial well-being of children from a previous marriage can be protected
• Personal and business assets accumulated before the marriage are protected by a prenuptial agreement.
• A prenuptial agreement reveals financial expectations before the wedding.
• A prenuptial agreement discloses assets a spouse may want to give to children or other family members in the event of death.
•...

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Case Watchers Make It Easy To Keep Up With Crimina

Case Watchers Make It Easy To Keep Up With Criminal Trial News

by: Marti Talbott

Nothing is more frustrating than trying to search for news about a specific trial, especially when the mainstream media isn’t interested. Now, Case Watchers keeps readers apprised in an easy to read format.
Updated daily, Case Watchers provides a summary of the case, links to the latest news stories and comments from readers. Our hottest and most frustrating current trial is the case against Francis Zarro accused of casino fraud in NY. News about this trial has been difficult to find, but our readers are great about letting us know when news is breaking. Other interesting cases include the man with nine wives, a judge on trial for bribery, the Tri-State Crematory case, a teen accused of killing his grandparents, the Seattle spammer trial, two serial killers, hired hits and many, many more. New cases are regularly added and are often suggested by readers.
The Jerry Dean trial, covered by Court TV, ended well before the story aired and we were there first. Jerry Dean was accused of killing a woman who filed a sexual harassment charge against him. However, the jury acquitted Mr. Dean and the case remains unsolved. Another troubling case is the “Deer Hunters Trial” involving the Duvall brothers. Although this case is closed, it remains active to capture the post criminal trial civil cases, such as the wife of the victim suing the wife of the defendant.
In addition, Case Watchers brings new attention to the plight of missing people. To date, we have eleven “cold cases” profiled and are offering awards to those willing to sponsor a missing person page by adding a link to their home page...

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How to Select a Patent Attorney

How to Select a Patent Attorney

by: Lisa Parmley

Could you use a little help protecting your invention? If so, an attorney skilled in patent law is your best bet.
As you can imagine, conveying your invention to someone who knows nothing about it will be difficult. Therefore, it is best if you are in direct contact with your patent attorney. You can meet in person and show the patent attorney any prototypes or drawings you may have to help illustrate your invention. As you can probably guess, the process will go more smoothly if you work with a patent attorney near you. Although it can be done, a long distance relationship will only strain the process.
Probably the best way to select a patent attorney in your city is through word of mouth. To help find referrals (and to associate with others who have interests similar to yours), you may want to join a local inventors club. You can also search through the USPTO’s list of registered patent attorneys or even just use their database to check your potential patent attorney’s credentials.
When you are seeking out a suitable patent attorney, you need to ask about their experience and background. Ask them what degrees they hold, the number of years they’ve spent writing and prosecuting patents, and the number of patents granted. Get references from previous clients and call them to ask about their experience with the patent attorney.
When selecting a patent attorney, it’s also important to find someone who specializes in the field your invention is related to. Patent attorneys are not equal in all areas. For starters, what is their degree(s) in? This is very important. Some patent attorneys will have a degree in engineering...

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The Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act

by: Steve Austin

Declaration Of Purpose:
An abundant evidence of the use of abusive, deceptive, and unfair credit collection practices by many debt collectors led to the declaration of the Fair Debt Collection Practices Act. The purpose of the Act, approved in September 1977, was to eliminate abusive debt collection practices by debt collectors and to promote consistent state action to protect consumers against debt collection abuses and invasions of individual privacy.
The Fair Debt Collection Practices Act laid down specific guidelines pertaining to the following procedures:
1. Acquisition Of Information [Sec 804]
Any debt collector seeking to acquire location information of a consumer would identify himself and his purpose correctly and if the need arises also disclose his employer. At no point during the inquiry process shall the collector state or imply that a consumer owes any debt, as this shall amount to invasion of individual privacy. Once the enquiry process has been completed, any correspondence thereafter shall be with the attorney of the said consumer only.
2. Communication With the Consumer [Sec 805]
The debt collector may not communicate with the consumer at any such place or time, which may be known to be inconvenient to the consumer. If the collector has information that an attorney represents the consumer, then any communication with the consumer should be done only if the attorney fails to respond to the collector’s communication.
3. Abuse Or Harassment Of The Consumer [Sec 806]
A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt...

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