Legal Considerations for Raising CapitalWritten by Henry J. Fasthoff, IV
NOTE: THIS IS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO BE CONSTRUED AS LEGAL ADVICE.
There are numerous legal considerations every entrepreneur must face when starting a new business, and raising startup capital is one that can be fraught with danger. Hiring a qualified securities attorney is not a luxury; its a necessity for businesses seeking to raise capital from third parties. Some of key general considerations are:
Properly organizing company as business entity under state law;
Ensuring company has issued enough authorized shares of stock of same type that will be offered to investors;
Make sure that any existing and potential legal problems are resolved before issuing stock to investors;
Have an experienced securities attorney examine federal securities laws, as well as securities laws of any state in which stock may be offered to prospective investors, to make sure company and its investment offer complies with those laws;
Extension of Requirement for Biometric Passport Issuance.Written by John Rians
The requirement for Visa Waiver travelers to have biometrics included in their passports has been extended for one year, to October 26, 2005. All newly issued passports must be biometrically enabled by this time. The extension was necessary to avoid potential disruption of international travel and to allow for adequate time to develop programs for producing a more secure, biometrically enabled passport by those countries enrolled in Visa Waiver programs.
Because of security concerns related to this extension, Department of Homeland Security will begin enrolling Visa Waiver Program travelers through US-VISIT program (U.S. Visitor and Immigrant Status Indicator Technology) at all airports and seaports on September 30, 2004. Enrollment in US-VISIT allows United States to continue its international efforts to enhance border security, while facilitating legitimate travel. The US-VISIT system requires two digital index finger scans, and a digital photograph of traveler to verify his or her identity.
The second requirement for Visa Waiver Program travelers will come into effect on October 26, 2004. From that date on, all passports used for travel in Visa Waiver Program must be machine-readable. Last year, Secretary of State granted a postponement until October 26, 2004, making this new date by which Visa Waiver Program travelers from 21 countries must present a machine-readable passport to be admitted to United States without a visa.