Taxes, Equity, & Notes
Convertible Notes are a common tool amongst early stage tech investors. Notes are a great way for startups to raise early capital without needing to establish a priced equity round. That being said, if you invest in a startup using...
What is a 409A Valuation?
A 409A valuation is a specialized assessment of the fair market value (FMV) of a private company’s common stock, which is typically reserved for founders and employees. This evaluation is conducted independently and is crucial for understanding the value of...
5 Convertible Note Terms You Need to Know
Convertible notes are a form of debt that converts into equity at some point in the future. They offer several advantages for startup businesses, including reducing initial transaction costs for the company, providing flexibility in setting the terms of the...
How To Make Your First SPV Distribution as a Fund Manager
Distributions serve as a measure of success for a Special Purpose Vehicle (SPV) as they are tasked with sharing the wealth created from a successful investment. This process involves collecting and distributing the earned funds in the correct amounts and...
KYC and Why It Is Important
KYC or Know Your Customer is an important set of guidelines that anyone facilitating a transfer of money must follow. It is designed to protect against money laundering and other illegal financial activity. In order to comply with KYC guidelines,...
How Do I Create an SPV?
The formation of your Special Purpose Vehicle typically begins with the legal formation of the entity as either a Limited Liability Company (LLC) or a Limited Partnership (LP). Having either of these two forms of business entities offers legal protections...
Why Preferred Stock Is “Preferred” Over Common Stock
The crowdfunding industry has employed various investment tools over the years. Some platforms suggest that founders offer specialized instruments like the CrowdSAFE, while others encourage them to sell regular stock. Syndicately’s approach is that everyday investors should have access to...
Applying for an EIN: A Step-by-Step Guide for Your SPV
An Employer Identification Number (EIN) is a unique number assigned to a business by the Internal Revenue Service (IRS) for tax-filing and reporting purposes. If you’re starting a special purpose vehicle (SPV) and need to get an EIN, you can...
Do I Need a Registered Agent for my LLC?
No matter whether you’ve established a single-member limited liability company (LLC), a partnership LLC, or a multi-member LLC, the role of a registered agent is essential. This registered agent acts as the dependable contact point, ensuring that both the public...