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PDF Editor FAQ

Are LLC interests deemed to be a 'Security' for the purposes of the SEC? How does this affect the addition of a new member with a capital contribution?

Almost always LLC interests are considered securities for purposes of SEC registration or exemption requirements. So typically, before you can issue LLC interests in exchange for a capital contribution you will need to find an exemption for the issuance. There are a number of potential exemptions available. But I can't tell from your question whether you are issuing the LLC interests to a passive investor, who might qualify as an accredited investor under Rule 506 or an employee or service provider who might be able to qualify for another exemption. You should consult securities counsel in your jurisdiction.

Can I launch my startup without incorporating?

You can, but I cannot stress enough how much of a bad idea it would be not to incorporate from the very beginning. Also, you should not wait to obtain legal counsel. If you go for it alone, you could miss some nuances that have a direct impact on your business. For example, the type of corporation you decide to establish will impact how your startup is taxed and whether your personal liability is at stake. A lawyer will be able to advise you about the ins and outs of incorporating as a limited liability company (LLC), S-Corp, C-Corp, or as some other type of corporation (more on the various types of corporations here). You will also need to give careful thought as to where you incorporate your business because not all states are created equal--some states are very friendly to startups (think Delaware) and others are considered less so. An attorney will provide you with expert advice about the pros and cons of the states you are considering for your company.Forgoing obtaining a lawyer at the beginning stages of your startup could cost you a lot more money down the road if things go wrong. The good news is, obtaining a quality legal professional at a reasonable price is not out of reach, even for a new business.My company LawTrades is disrupting the traditional framework for obtaining and providing legal services. First of all, since we exclusively exist online, overhead costs are essentially eliminated. Thus, when you engage a lawyer through LawTrades, you are paying for the work itself and not other expenses. Also, rather than an hourly rate, you will pay a flat rate for whatever legal service you need, so you never have to worry that picking up the phone to ask a question is going to cost you more out-of-pocket. All of our attorneys are pre-vetted, highly-trained and have solid legal experience, especially with tech startups and small businesses. In addition, for each engagement, LawTrades provides a Project Manager who will be available to troubleshoot any problems that may arise from the start of your project through to its completion. We offer a free consultation and no obligation price quotes. Check us out. Good luck!

Centrists and liberals, what do you think about Parler being shut down by Apple, Google, and Amazon?

I’m a centrist (moderate) by every definition and I’m 100% percent for it. First, let’s dispense with the First Amendment red herring.Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.1A rights only apply to the government. Since Amazon, Apple and Google are not the government, the First Amendment doesn’t apply. Anyone who babbles about the First Amendment is either woefully ignorant or gaslighting you.Are the Big Three censoring conservative views? Of course not. This is the only view the care about.It's All About the Benjamins - WikipediaThis is a simple violation of the Terms of Service (“ToS”), i.e. a contract dispute. Parler contracts with the Service Providers, i.e. Amazon, Google and Apple for the Service Provider to provide hosting services. However, the Service Provider must be able to remove you from their system if you violate the contract. This contract generally has a dispute resolution process, but there are a limited set of circumstances for which the contract permits the Service Provide to immediately disassociate itself from you. These includeChild pornographyRepeated hate speechRepeated Intellectual Property violationsAdvocating illegal activityConducting illegal activity on their platformAnd think about it. If someone was posting child porn, you want that vileness removed, immediately and the poster incarcerated. No cure period, no back and forth, that needs to go…Now. Fullstop.Amazon presented robust evidence that it notified Parler several months ago about it violating Amazon’s Terms of Service. “In mid-November 2020, AWS received reports that Parler was hosting content threatening violence, in breach of the agreement.” Docket for Parler LLC v. Amazon Web Services Inc, 2:21-cv-00031 - CourtListener.com Amazon gave Parler a chance to clean up its act. But since the notification, “AWS reported more than 100 additional representative pieces of content advocating violence to Parler’s Chief Policy Officer, including…. “HANG THAt N***** ASAP”White people need to ignite their racial identity and rain down suffering and death like a hurricane upon zionists.”We need to act like our forefathers did Kill [Black and Jewish people] all Leave no victims or survivors.”#JackDorsey … you will die a bloody death alongside Mark Suckerturd [Zuckerberg].… It has been decided and plans are being put in place. Remember the photographs inside your home while you slept? Yes, that close. You will die a sudden death!”“We are going to fight in a civil War on Jan.20th, Form MILITIAS now and acquire targets.”“On January 20th we need to start systematicly [sic] assassinating [sic] #liberal leaders, liberal activists, #blm leaders and supporters, members of the #nba #nfl #mlb #nhl #mainstreammedia anchors and correspondents and #antifa. I already have a news worthy event planned.”https://www.courtlistener.com/recap/gov.uscourts.wawd.294664/gov.uscourts.wawd.294664.10.0_4.pdfThis is not conservative. My Republican friends would be aghast, offended and downright pissed off to be associated with such racist, anti-semitic, unamerican bullshit. The last thing the Big Three want is to be seen as complicit or at least supporting such unamerican vitriol. Given that attempted insurrection on January 6, 2021, Service Providers needed to immediately disassociate themselves from the insurrectionists and the people who incited them.We see the same thing where various rioters were immediately fired by their respective companies. There is a huge business justification for immediate disassociation. Pity the poor CEO of Goosehead insurance who woke up on morning to this trending on twitterThis is Paul Davis. Paul is a lawyer. He’s also associate general counsel & director of human resources at Goosehead Insurance. Today he stormed the capitol building in an attempt to stage a coup against the US government and documented it (!) on Instagram.This is what Amazon, Apple and Google told Parler.

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