(281) 890-7090






Understanding the Key Features of a Convertible Note Offering

Now that we have considered the principal reasons a startup may choose to issue convertible notes to investors in lieu of selling shares – namely, to raise capital efficiently and without a fixed valuation – let’s get a better understanding of how a convertible note offering works. Because a startup investor’s strategy is fundamentally high-risk high-reward, convertible notes look much different than, for example, a traditional bank loan to a small business. The goal of a small business lender is to collect interest income whereas the goal of a convertible note investor is to acquire equity in a startup (at a discount)...

Continue reading

What is an Texas Legacy Trust, and When Do You Need One?

There are many types of trusts with different features designed to achieve different estate planning goals. Depending on the type, trusts can keep assets out of probate, prevent beneficiaries from wasting their inheritance, protect assets of beneficiaries with special needs, minimize tax burdens, and protect assets from creditors. If placing your hard-earned assets out of the reach of potential future creditors is one of your goals, you may want to consider an Texas Legacy Trust. An Texas Legacy Trust (TLT) is a type of domestic asset protection trust (DAPT). The TLT is a relatively new tool in Texas estate planning attorneys’ toolkit, having...

Continue reading