Using Stock Warrants to Raise Capital: A Guide for Entrepreneurs
What Are Stock Warrants? A stock warrant is a financial instrument that gives the holder the right to purchase shares of a company’s stock at a specified price (the exercise price) within a defined time period. Unlike stock options, which are typically issued to employees as compensation, warrants are often issued to investors, lenders, and […]
Illinois Attorneys for Business and Corporate Law
Experienced Illinois Business Attorneys Illinois businesses operate in one of the most dynamic and regulated business environments in the country. From Chicago’s corporate corridors to the manufacturing and agricultural economies of Central and Southern Illinois, companies need legal counsel that understands both the complexity of business law and the practical realities of running a business […]
Business Formation Lawyers: Start Your Company the Right Way
Why You Need a Business Formation Attorney Experienced business formation lawyers help entrepreneurs choose the right entity structure and launch their companies with proper legal protection. Starting a business involves more legal decisions than most entrepreneurs realize. The entity structure you choose, the operating documents you draft, the ownership percentages you allocate, and the tax […]
How to Read a Cash Flow Statement: A Business Owner Guide
Why Cash Flow Statements Matter for Business Owners A cash flow statement tracks the actual movement of money into and out of your business over a specific period. Unlike the income statement, which records revenue and expenses on an accrual basis (when earned or incurred), the cash flow statement shows when cash actually changes hands. […]
Board Member Agreements: Essential Terms for Corporate Governance
Why Board Member Agreements Matter A board member agreement formalizes the relationship between a company and its directors, establishing expectations, responsibilities, compensation, and legal protections. While not legally required in all jurisdictions, these agreements are a governance best practice that protects both the company and the individuals who serve on its board. At Howard East, […]
How to Stop Check Kiting Scams and Protect Your Business
What Is Check Kiting? Check kiting is a form of bank fraud that exploits the float time between when a check is deposited and when funds are actually collected. The scheme involves writing checks between two or more bank accounts, artificially inflating the balance in each account before the banks can verify that the funds […]
Section 523 of the Bankruptcy Code: Non-Dischargeable Debts
Understanding Section 523 of the Bankruptcy Code When a debtor files for bankruptcy, most debts can be discharged — meaning the debtor is no longer legally obligated to pay them. However, Section 523 of the U.S. Bankruptcy Code identifies specific categories of debts that survive bankruptcy and cannot be discharged. For creditors, understanding these provisions […]
How to Raise Money Through a Private Placement Memorandum
What Is a Private Placement Memorandum? A private placement memorandum (PPM) is a legal disclosure document provided to prospective investors in a private securities offering. Unlike a public offering registered with the SEC, a private placement relies on exemptions — most commonly Regulation D — that allow companies to raise capital from accredited investors without […]
Practicing Law Without a License: What You Need to Know
What Constitutes Unauthorized Practice of Law? Practicing law without a license is a serious legal violation that can result in criminal charges, civil penalties, and injunctive relief. Every state restricts the practice of law to individuals who have been admitted to the bar in that jurisdiction, but defining exactly what activities constitute the “practice of […]
Right of First Refusal: What Business Owners Need to Know
What Is a Right of First Refusal? A right of first refusal (ROFR) is a contractual right that gives its holder the opportunity to enter into a business transaction — usually the purchase of an asset or ownership interest — before the owner is free to negotiate with third parties. If you hold a ROFR, […]