Nevada entrepreneurs who are looking to raise money for their companies may want to consider using convertible notes. Essentially, the note is a debt instrument that converts into an equity share of a company as more money is raised. For business owners, it is a simpler way to raise money because there is less of a need to put a strict valuation on the company. It may also be beneficial from a tax perspective.
Nevada business owners and those who are considering starting a business sometimes have questions about corporate formation documents and their relevance. The most important corporate document in most states is the articles of incorporation. In Nevada, the filing of the articles of incorporation with the Secretary of State is the action that brings the corporate entity into existence. Typically, following the filing of the articles of incorporation, the shareholders or board of directors meet to adopt bylaws, appoint officers and issue stock certificates.
Baby boomers own approximately 12 million businesses in the U.S., plenty of which are small companies that help prop up local communities. Many of these small businesses need to prepare for their inevitable fates thanks to the fact that baby boomers are on the cusp of retiring. Lots of Nevada businesses will either have to change hands or close down.
Nevada residents who use a non-disclosure agreement, or an NDA, may be using the legal document for their business dealings in the wrong way. There should be careful consideration given to whether an NDA is necessary, and if it is, whether the NDA that is needed should be a two-way NDA.
Business owners in Nevada who are thinking about moving on to the next phase of their lives have many factors to consider before ding so. Based on information from the California Association of Business Brokers, over 12 million businesses are owned by baby boomers who may be ready to transition into retirement.
Entrepreneurs in Las Vegas starting a new small business may be concerned about how to form the business in order to be appealing to investors. Investors who want to achieve a significant benefit from a new business may be looking toward the exit strategy in order to determine whether an investment is a good fit. For many small business founders, the most common thoughts about an exit strategy can be particularly dramatic: for example, a lucrative buyout from a major tech company or going public on the stock market with an initial public offering (IPO).
Many Nevada entrepreneurs feel as if their business idea is too good to fail. However, simply coming up with an idea isn't enough to know whether or not a single product or service could create the foundation of a successful company. At some point, the founder has to be able to follow through on that idea. This takes an ability to manage a company's finances and everything else that comes with owning a business.
Small business owners in Nevada and elsewhere may find that an SBA loan is an ideal way to acquire working capital. These loans can be used for almost any purpose, and they also come with reasonable repayment terms and interest rates. However, not just any company can qualify for such assistance. In order to meet the requirements for securing a loan, a company generally needs to have been in operation for two years or more, a credit score of 620 or higher and more than $100,000 in annual revenue.
There is a variety of reasons why a Nevada business owner may need financing. For instance, cash may be needed to keep up with a spike in demand or the doors open during the slow season. Those who need a loan may want to consider their debt-service coverage ratio (DSCR) when determining how much they need. The DSCR gauges a company's ability to pay back its debt given its current cash flow.
Those in Nevada and elsewhere who want to start their own company may have a lot of expenses when they first start. Some of these expenses they may plan for. However, there may be several that they fail to anticipate or don't fully understand. For instance, business owners will need to pay a self-employment tax of 15.3 percent on profits of up to $127,000.