Securities

Lyda Law Firm is built to help startups and small businesses. One of the greatest, and most complicated, opportunities for a startup is in seeking funding. We help startups with contracts, compliance, and organization while raising capital.

We can help in the following areas:

  • Seed funding
  • Crowdfunding
  • Friends and family raises
  • Angel investors
  • Venture capital funding
  • Debt equity financing (convertible notes, warrants)
  • Series funding
  • Private equity
  • SBA loan compliance, and more.

Our attorneys and resources help efficiently and effectively ensure legal compliance while also making sure that your shareholder records are easily and neatly organized. Having a strong shareholder records organization system not only helps keep you legally compliant, but also should appeal to future investors. We also can help you formalize protection for your intellectual property, which may make your business more attractive to investors.

We strive to make the process as painless and reliable as possible so that you can focus on building your business.


Funding

There are many funding options to consider when starting a business. From self-funding to venture capital and everything in between, Lyda Law Firm can help you make the best possible decisions when funding your new business.

The three main ways to fund a new business are:

  • Self-Funding
  • Loans
  • Outside Investors

You can choose one of these options or any combination of the three. Each option comes with their own unique consequences, so it’s important to take your time and talk through the decision with a trusted advisor. Let’s look at each one individually.

Self-Funding

Self-funding is the simplest way to fund a new business. When self-funding, you don’t have to pay any interest (like you would with a loan) and you don’t have to hand over any control or ownership (like you would with outside investors).

The biggest obstacle to self-funding is, obviously, having the available capital. Another issue is that self-funding could limit how quickly you expand, which could lead to missed opportunities. If you have enough cash on hand to avoid these pitfalls, self-funding is the smoothest path forward.

Small Business Loans

The second way to fund your business is through a loan. There are several different types of loans for small businesses. The most well-known is an SBA loan, which stands for Small Business Administration loan.

If you don’t qualify for an SBA loan, there are many different types of private loans to fund your business. Since they do not have a government guarantee, they usually have higher interest rates.

The downside of any loan is that you have to pay it back (with interest). If you’re unable to pay back a loan, the lender can attempt to collect on the debt that you owe. Collection methods vary from state to state, so consult with a professional in your state and make sure you understand the consequences of delinquent payments. Also, make sure you understand who is liable to make those payments. Depending on your business entity type, your personal assets could be at stake.

Outside Investors

The third way to fund your business is through outside investors. It’s important to make this decision early because you should consider forming your business as a subchapter C corporation if you use outside investors.

There are also a host of laws and regulations governing outside investments in your business. If you go this route, do your homework and consult with a securities lawyer licensed in your state.

Get Started

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Colorado

720.767.2220

1615 Platte St., 2nd Floor
Denver, CO 80202

California

855.855.9400

Los Angeles area:
10100 Venice Blvd.
Culver City, CA 90232

San Francisco:
1390 Market St., Ste. 200
San Francisco, CA 94102

Washington

206.426.1960

Seattle area:
22722 29th Drive SE, Ste. 100
Bothell, WA 98021

Texas

737.520.5770

106 E. 6th St., #900-125
Austin, TX 78701

The information provided on this website is not legal advice. Visitors to this website should not act upon information contained in this website without obtaining professional advice. Neither viewing this website nor sending an email or other communication to the Lyda Law Firm creates an attorney-client relationship between you and the firm. Unless the firm has agreed to represent you, any communication from you to the firm by email or otherwise may not be treated as confidential or privileged. This site and its contents may be construed as attorney advertising. Any testimonials or endorsements do not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
© 2021 Lyda Law Firm LLC
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