Why should my company have a board?

By Rick Colosimo / March 1, 2016 / Comments Off on Why should my company have a board?

Most of my startup and small business clients are operated by the majority owners – a founder/CEO holding 70%, for example, or the CEO who owns 100% of the company. For each of these situations, its incredibly uncommon for the company to have a board. Why is this? NB: I’m not talking about technical corporate…

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Are convertible notes pre-money?

By Rick Colosimo / February 23, 2016 / Comments Off on Are convertible notes pre-money?

How should I account for convertible notes of a company before I invest? Convertible notes aren’t new; they’ve been around for over 15 years, mutating from their original form as bridge notes used by VCs to provide short-term capital to a company while a financing deal was pending. But people still get confused when it…

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Code Smell in Development Agreements

By Rick Colosimo / January 14, 2016 / Comments Off on Code Smell in Development Agreements

Code Smell in Development Agreements I recently answered a Quora question about the Gigster contract for freelance developers. In that answer (reproduced below), I run through some basic considerations that almost always deserve attention – regardless of whether I’m representing the developer or the client. If you read through the comments, you’ll see a number…

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NY LLC Publish or Perish

By Rick Colosimo / December 24, 2015 / Comments Off on NY LLC Publish or Perish

Still No News on New York LLC Publishing Requirement New York state has imposed an unusual requirement on newly formed LLCs. Each LLC is required to publish a legal notice of its formation in newspapers designated by the county clerk for six weeks. Because not all newspapers are designated, there is a noticeable lack of…

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