For many startups, raising capital is a major step in achieving explosive growth. But each raise comes at a cost, adding an additional layer of complexity to your business.
With years of experience as entrepreneurs, Apex Corporate Law is here to help you navigate the challenges of startup financing, from the initial sparks of angel financing to the robust engines of venture capital.
Accelerate your ascent through
Raising Capital
Selecting the Right Entity
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Offers the flexibility of a partnership with the liability protection of a corporation. A popular choice for many entrepreneurs, because it’s easy to set up and has tax benefits, though fundraising is a lot more challenging. Not advised if you’re planning to bring on investors.
For certain professionals, there is also the option of a Professional LLC (PLLC) . This is a special structure which allows doctors, accountants, and lawyers, amongst others, to benefit from the use of an LLC.
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Suitable for businesses that aim for significant growth. Provides the most protection and structure, and allows for easier fundraising, but comes with increased regulatory requirements.
C-Corps are subject to “double taxation”, where the corporation is taxed, and money paid out to shareholders and employees are further taxed. Not a fan of this? Fortunately, for most startups, you can get S-Corp classification from the IRS to get avoid this.
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Often referred to as charities, non-profit corporations are exempt from business taxes, amongst other benefits. However, establishing a non-profit can be complicated, and it is highly recommended to work with a qualified New York business attorney.
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Ideal for those who are journeying with a business partner, sharing both the responsibilities, the risks, and the rewards. Partnerships don’t require any filing, but partners should set up a partnership agreement to ensure everyone is on the same page, and that protections are in place.
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Made up of a General Partner, a manager who takes on all the liabilities of the LLP, alongside Limited Partners, who usually consist of more passive investors. A common structure for investment companies, Limited Liability Partnerships must be registered with the Department of State.
Choosing a business structure is more just a formality; it’s about setting the direction for your business's future growth. The right structure will set you up for success, protecting you from liabilities, saving you money on taxes, and allowing you to raise capital with ease. The wrong one means you’re building on quicksand.
Should I Incorporate?
Incorporating one’s business, through either an LLC or a Corporation, is the best option for the vast majority of entrepreneurs.
Here’s why it’s important to incorporate your business:
Liability Protection: The “corporate shield” is one of the most powerful tools an entrepreneur can have access to, separating your personal assets from business assets. This allows you to take big risks in growing your business, while ensuring you’re protected from the worst.
Access to Capital: Incorporation can open doors to funding opportunities, allowing your business to grow and scale faster than your competition.
Durability: Incorporation ensures the business can continue beyond the original founders, making it easier to bring on new people, and paving the way for long-term success.
Credibility: A formal business structure can lend your venture the credibility it needs to build trust with customers, partners, and investors.
FAQ
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Our firm typically helps businesses incorporate in New York, but we can also help with other jurisdictions. For startup companies looking to do to a raise, either through venture capitalists or angels, Delaware or Nevada are both great choices, with corporate-friendly tax structures and favourable regulations.
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You can incorporate from anywhere, even from outside of the US. Our firm has frequently helped clients from Canada, Mexico, and beyond incorporate in the United States.
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The cost of incorporating varies. At the bare minimum, it costs around $200 to file the paperwork, if you plan on handling the rest of the incorporation process yourself.
Note that just because you’ve filed doesn’t mean your corporation is official. For instance, in New York LLCs will require an operating agreement, which you’ll also need to put together.
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It is certainly possible to DIY incorporation. However, we don’t recommend it. Filing the document is only the first step, and given that your entire business will be built on these foundations, it’s important to get it right.
For entrepreneurs who want the best for their business, Apex Corporate Law offers a comprehensive startup package for $2450, everything included.
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If your goal is to raise capital and scale your company, a corporation is better. However, if your goal is to build a cash cow business, LLCs are easier to maintain, and will save you money on taxes in the long run.
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The time it takes to form a business can vary from a few days to several weeks, depending on the state and the complexity of your business structure. Many States offer online filing, which can greatly speed up the process.
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After forming a business, there are several ongoing requirements that may include filing annual reports, maintaining proper records, renewing licenses and permits, and meeting tax obligations.
Ready to take your business to new heights?
Don’t navigate the complexities of corporate law alone. Whether you’re setting up a new venture, securing your intellectual property, or negotiating a crucial deal, Apex Corporate Law is here to guide you. Schedule your consultation today and partner with us for tailored legal strategies that drive real results. Contact us now to secure your business’s tomorrow.
Elevating Ambitions, Delivering Exceptional Outcomes
Apex Corporate Law: Your Guide in the Ascent of Capital Raising for Startups and Emerging Companies
At Apex Corporate Law, we don't just support your climb; we're your strategic partners in elevating your startup or emerging business through effective capital raising. Navigating the financial terrain of New York City, our role is to meticulously craft, structure, and implement capital-raising strategies that maximize efficiency while steering clear of the crevasses of complications and delays.
Emerging businesses encounter unique challenges that their more established counterparts may never face. From the initial sparks of angel financing to the robust engines of venture capital, a seasoned New York City business finance attorney is crucial. At Apex Corporate Law, we are with you from the first base camp of entity formation and seed capital, through the challenging slopes of building sales and marketing strategies, and onto the high stakes of venture capital financing and strategic alliances.
Invaluable Assistance on Your Journey to the Summit
Our expertise extends beyond mere fundraising. We help our clients carve out a significant market presence, establish solid supplier and provider relationships, develop customer goodwill, and navigate the complex regulatory landscapes of federal and state agencies. With Apex Corporate Law, your journey to the summit is safeguarded against common risks and pitfalls, ensuring a clear path to success.
Diverse Financial Expertise for Diverse Needs
Apex Corporate Law also specializes in forming and managing a variety of private equity funds, including venture capital funds, hedge funds, film funds, and other investment vehicles. Whether it's guiding seed capital offerings, facilitating venture capital investments, orchestrating initial public offerings (IPOs), or advising on asset purchases and sales, our comprehensive suite of services is designed to support every phase of your business's financial ascent.
Common Types of Business Finance Cases We Handle:
Seed capital offerings
Venture capital (VC) investments
Private equity, including angel investments
Initial public offerings (IPOs)
Asset purchases and sales
Loans and financial structuring
Entity formation and advising on choice of entity
Meticulous due diligence processes
Secure Your Business’s Future Today with Apex Corporate Law
Whether you’re charting the initial courses of a startup or steering an emerging company towards new peaks, the expertise of a dedicated New York City business finance lawyer is indispensable. Reach out to Apex Corporate Law today, and let’s discuss how we can help you not just achieve but exceed your ambitious financial goals. Your journey to the summit of business success starts with a call to our firm. Let Apex Corporate Law be the cornerstone of your venture’s growth and success.