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Hot topics affecting startups

Insights from veterans of corporate boardrooms

The information contained in these pages is offered for educational purposes only and should not be considered legal advice.  If you would like legal advice, do not hesitate to contact us.

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E2 Visas in 2021: New and Emerging Issues

E2 visas authorize certain foreign investors and key employees of their companies to work in the US.  The COVID-19 pandemic has added complexity to numerous aspects of E2 visas.  This article explains new developments that

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5 Changes of E2 Visas to Watch for in 2020

The beginning of a new year often motivates budding entrepreneurs to pursue dreams of launching a startup company.  To accomplish their entrepreneurial goals, thousands of startups around the world use E2 investor visas to launch

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USEFUL RESOURCES

LLC vs CORPORATION

The following is a brief summary of key differences between LLCs, C-Corporations and S-Corporations.  For a more detailed overview of these differences, read our articles or contact us directly.

LLC

  • Formed by filing Articles of Organization
  • Owners are "Members"
  • Unlimited number of owners
  • Owners can be individuals and business entities
  • Owners can have US or foreign citizenship/ residency
  • Both common and preferred stock allowed
  • Income allocation: pro rata or disproportionate
  • Pass-through taxation allowed
  • Few compliance hurdles
  • Not favored by VC firms

C-Corporation

  • Formed by filing Certificate of Incorporation
  • Owners are "Shareholders"
  • Unlimited number of owners
  • Owners can be individuals and business entities
  • Owners can have US or foreign citizenship/ residency
  • Both common and preferred stock allowed
  • Income allocation: pro rata or disproportionate
  • Double taxation required
  • Many compliance hurdles
  • Favored by VC firms

S-Corporation

  • Formed by filing Certificate of Incorporation
  • Owners are "Shareholders"
  • Maximum of 100 owners
  • Only individuals can own; not business entities
  • Owners must be US resident or US national
  • Only common stock allowed (not preferred)
  • No disproportionate income allocation allowed
  • Pass-through taxation allowed
  • Many compliance hurdles
  • Can transform for VCs

NON-PROFIT CORPORATION vs BENEFIT CORPORATION

The following is a brief summary of key differences between Non-Profit Corporations and Benefit Corporations.  For a more detailed overview of these differences, read our articles or contact us directly.

TWO US VISA OPTIONS FOR OVERSEAS ENTREPRENEURS

The following is a brief summary of key differences between the E-2 Investor Visa and the EB-5 Immigration Investor Visa.  For a more detailed overview of these differences, contact us directly.

E-2 Investor Visa

  • Not on direct pathway to green card
  • Successful applicants are allowed to work at the business described in the application’s business plan.
  • Visa is valid for 2-5 years. Renewable
  • Amount of minimum investment varies case-by-case
  • Detailed business plan is required
  • Processing time after submission of application is approximately 2 to 4 months
  • Only citizens of certain countries are eligible to apply
  • Hiring additional US workers is not required, but if business plan calls for the hiring of staff, your application might have a higher chance of being approved

EB-5 Immigration Investor Visa

  • Direct pathway to green card
  • Successful applicants are allowed to work anywhere in the US after receiving their green card.
  • Visa conveys permanent residency status (green card).
  • $900,000 minimum investment (sometimes $1.8 million)
  • Detailed business plan is required
  • Processing time after submission of application is approximately 12 to 24 months
  • Open to citizens of all countries
  • Must directly or indirectly create (or save) 10 full-time US jobs

ADVERTISING LAW: USE OF "MADE IN USA" CLAIMS

Startup companies that launch products that are made in America must comply with US advertising laws.  Certain products, like textiles and cars, must disclose their US content.  Other products have the option of using the claim, but only to the extent that it is truthful. 

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