Who Owns The Securities In Your Company?
Depending on the type of business entity you have established, capital table management will be integral to keeping your business ahead of IRS and SEC compliance. It will also be your lifeline to transparent communication with your myriad shareholders and investors.
A capitalization table (cap table) will help you keep track of the essential elements of your business, namely who owns what and how much. It is a valuable method for tracking founders, investors and stockholders and their percentages and shares of your company’s securities, such as:
- Stocks issued
- Equity grants
- Convertible notes
- Simple Agreement for Future Equity (SAFEs)
Tracking ownership and the level of equity is a vital component of the architecture of your business success, especially if you plan to move your privately held company public.
Equity Management Is Complex
Regardless of the size of your business or type of entity, tracking every transaction is critical. But when you have common shares, various series or restricted stocks, creating and maintaining a current cap table as your source of truth can be complicated without the assistance of an experienced business and investment law attorney.
At Fridman Law Firm PLLC, our attorneys have relevant experience for assisting you build a firm foundation and keeping your business on track as you grow.