Five-minute general counsel: choose a nonprofit entity

By Rick Colosimo / May 11, 2020 /

I recently got an inquiry for someone with an unusual entity selection question. Here it is: “I am in the process of creating a non-profit. Can you please tell me whether you think a non-profit should be an LLC or Corp… and why?” Now, this person didn’t just pull my name out of a hat;…

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Should co-founders vest in their equity?

By Rick Colosimo / July 17, 2017 /

Should co-founders vest in their equity? Lots of founders – everyone who hasn’t been down this road and some who have – feel that because they started the company, because it is, at that point, “their” company, none of the co-founders should have vesting. And they’re right: at that stage, everyone is committed, has a…

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Why are there accredited investors

By Rick Colosimo / July 1, 2017 /

I’ve been meaning to write a post about accredited investors for some time now, and a random Quora question just got most of my fury. Here’s the steak: Actually, the Securities Act of 1933 (LII link)) regulated public offerings. The definition of accredited investor appears in Rule 501 of Reg D (LII link), which is…

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Why I negotiate disputes

By Rick Colosimo / February 13, 2017 /

Mark Suster wrote a great post on management bandwidth being the scarcest resource for startups. It seems from the outside that he’s wrong, that only money stands between every team and their dream, but you have to go around the block a few times before you see the truth of his advice. You can take…

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