Protection of Proprietary Information for Early Stage Businesses

The protection of intellectual property is essential to the success of a business focused on development and marketing of a new technology. The protective approach shall be broad instead of narrow. It may include the use of Non-Disclosure Agreement (NDA) or Confidentiality Agreement, specifically tailored employment or third party service contract, Noncompetition Covenant, ,filing of a Provisional Patent or a trademark.

NDA may be a standalone agreement or a confidentiality clause may be built into a service contract. It is a fairly common practice for a technology start-up to forbid the disclosure of its proprietary technology by another party who needs access to this technology to design systems, platforms or products for the start-up. The goal is not only prohibiting the disclosure, but also clarifying who owns the intellectual property of what specific component. It is the best interest for most businesses to require the service provider to release the ownership of intellectual property right of any work provided. This shall be made clear in the contract.

The company shall require the primary sales representative or software developer to sign a Noncompetition Agreement. That individual could be either an employee or contractor. The extent of the non-competition as to the geographic regions, time and scope shall be reasonable and for legitimate business purpose. Legitimate business purpose is construed as protect trade secret, confidential information and goodwill. If the engagement is with another business, not an individual, the non-competition prohibition could be difficult to impose depends on the circumstances.

Basic Structure of a Business Corporation

Every week, I’ve encountered questions and confusions from many soon-to-be entrepreneurs, and sometimes even entrepreneurs who are running real companies, about power struggles among board of directors, officers and shareholders.

In general, board of directors exercise all the corporation powers except those reserved to the shareholders by statutes, articles of organization or bylaws. It means, business affairs of the corporation shall be managed under the direction of the board. Note the word “direction”. Board does not engage in day to day operation of the corporation, but only “directs”. The board members are elected by the shareholders. The number shall be fixed by the shareholders at the annual meeting. In Massachusetts, the number shall be at least one. If the corporation has more than one shareholder, the number of directors shall not be less than three.

The most basic structure of the officer team has a President, a Treasurer and a Clerk. President is in charge of the daily operation of the business. One would imagine a President has pretty broad authorities, but amazingly, his power is very limited and in most instances only has the authority to enter into routine transactions, unless he is also a Chief Executive Officer (CEO). Treasurer receives and disburses corporate funds. Clerk, also referred as Secretary, takes minutes of board and shareholder meetings and maintains corporate records and seal. All the officers are elected and removed by the board and fulfill their duties at the direction of the board. The scope of their authority shall be enumerated in the bylaws.

Shareholders are the owners of the corporation. They have the right to elect and remove board members, which is a right sometimes shared with the board itself. Shareholders have the right to inspect and copy corporate records. Corporate records include articles of organization, bylaws, resolutions adopted by the board, minutes of shareholder meetings, records of actions taken by shareholders without meetings, financial statements, corporate communications to shareholders, and names and addresses of directors and officers.

The biggest source of contention is who has the right to do what, and what quorum and how many votes are needed to elect or remove a board member or officer, and to determine a corporate action or transaction. Well drafted articles of organization and bylaws shall address all these issues in accordance with the statutes, thus to minimize the likelihood of future disputes.

Wage and Hour Exemption in Mass

By Mass law, employers have to pay employees overtime pay, with some exceptions. Exemptions applies only to highly skilled employees who have achieved a level of proficiency in the theoretical and practical application of a body of highly specialized knowledge, such as, computer and system analysis, programming, and software engineering. It is usually a fact specific task to define what types of jobs within this parameter has "achieved certain level of proficiency", mostly those employees who do not need close supervision and can work independently.

To avoid overtime claims in software industry and emerging businesses that may be able to take advantage of a special minimum wage and overtime exemption for workers in these areas. The employees must be salaried or hourly, with a regular rate of a minimum wage set by the law, and must have a primary duty consisting of either or any combination of:

Application of system analysis techniques and procedures.

Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs; or

Design, documentation, testing, creation, or modification of computer programs related to machine operating systems.

Can Wrongful Termination Claim be based on Voluntary Quit?

My phone rang early afternoon on Tuesday. A lady asked if I have a few minutes to listen to her story and determine if she has a valid wrongful termination claim. It turned out that she quit instead of being discharged by her employer. At the first glance, it doesn't seem to fit in the parameters of a "wrongful termination". However, it is noted that her decision to quit may have been a "constructive discharge" because her salary would be reduced to half and position would change from a manager supervising thirty plus people to one of those she oversaw.

Constructive discharge is a type of termination that is "quit" on surface but "discharge" in nature. It usually occurs when employer makes significant changes of employee's job responsibilities, demotes employee to a much lower position, or cut her compensation to a point of intolerance based on unlawful grounds, such as, race, religion, color, disability, nationality, age, etc. Under these circumstances, nobody would have been able to continue the job because of the humiliation and indignity she would suffer as a result of it, voluntary quit is but the only choice she has.

Interestingly, early next Morning, she called back telling me that her employer offered her job back last night. The ending was not too bad. I gave her something to take away - when you encounter a situation like this, don't quit on spot, calm down and give yourself just a few hours to think it through and perhaps consult with an attorney before making a wise decision.

Can My Company Sponsor My Own H-1B?

The tough job market makes increasingly difficult for foreign students to secure post graduate employment from companies who are willing to sponsor work visas. Many entrepreneurial minded students ask me how likely their labor certificates are to be approved by Department of Labor (DOL) if they have some “ownership” in the companies that sponsor their work visas. Will they be considered as “investors” or “employees” for the visa purpose?

“Investor” usually includes anyone that has a capital interest in the company. A sole shareholder of a corporation or limited partnership rarely works. A Corporation is a more suitable type of business for that purpose on behalf of employee/owners. For instance, a Board of Directors that has the power to remove executives allows the DOL to be convinced that a position may be available to U.S. workers. There is no magical percentage of ownership that would guarantee a successful labor certification.

There also has to be a bona fide job opportunity. The corporation cannot be set up as a scheme or sham for foreign entrepreneur to procure a labor certification. In addition, the foreign employee/owner’s skills cannot be so integral to the company’s operations that the company would cease to exist but for the employee/owner’s participation. Furthermore, the foreign employee/owner’s degree of control over the business is also a factor. Basically, if his ownership interest and control over the management of the company is too great, it is suspected that a bona fide job offer cannot exist for a U.S. worker. The Labor Certificate will probably fail.

These are the typical questions about the foreign employee/owner that need to be addressed:

1. Is he in the position to control hiring decisions regarding the job for which certification is sought?

2. Does he have an ownership interest in the company?

3. Is he involved in the management of the company?

4. Is he on the Board of Directors of the company?

5. Is he one of a small number of employees?

6. Are his services so indispensable to the employer that the business would likely cease to exist without him?

When to Form a Business

I have been asked by many entrepreneurs about the timing to incorporate their businesses. Some are hesitant to do so at an earlier time for a number of reasons, primarily, the cost associated with the formation, uncertainties about the market prospect and how equity and profit can be split among co-founders, and conflict of interest with existing or former employers. There are many good reasons that a company shall be formed sooner than later. I encourage entrepreneurs to balance the advantages and disadvantages.

Advantages to form a company are:

Ability to contract/Limited liability – Founders may want to establish relationships with third parties in order to plan the business. These third parties could be strategic partners, advisors, employees and etc. Some founders enter into these contracts before the company is formed, this arrangement is not ideal, because any potential liabilities arising from the contract may be founders’ personal liabilities. Once a company is formed, a corporate shield is established, and founders could not be held personally liable in conducting the normal business in most circumstances.

Tax advantage – The earlier the company is formed the sooner stock can be issued and sooner the capital period begins to run. For income tax purposes, when stocks that have been held for more than one year are sold, they will be taxed at a preferential rate than those have been held for less than one year.

Cheap stock issues – If you wait until receiving strong indications from potential investors to form a business, there may be bigger tax liabilities for founders. The difference between what founders pay for their stocks and fair market value of stock at the time of purchase (as determined by reference to what investors are willing to pay) may be characterized as income, possibly resulting in significant tax liabilities to founders.

How do Courts Handle Fiduciary Duty Disputes of LLCs?

LLC is usually consisted with managers and members. General managers manage the daily operation of the LLC. Members are usually silent investors. Managers in an LLC are subject to duty of loyalty, including duty to avoid conducting personal business with the LLC under some circumstances, duty not to take LLC opportunities for his own personal interest and duty not to compete with the LLC. In addition, managers must disclose information relating to the business of LLCs to other managers and members upon their request.
Many disputes have been brought by limited members against general managers for breaching specific provisions in the operating agreements, or breaching implied contractual covenant of good faith and fair dealing. The arguments often centered whether the general partner exercised fiduciary duties when conducting “internal affairs” or transacting business deals with a third party that allegedly interfered with limited members’ statutory or contractual rights.
Get a well drafted operating agreement among members and managers are essential to avoid potential disputes. Some courts have been reluctant to hold general manager liable to limited members when the language of the operating agreement relating to a specific fiduciary duty is somewhat ambiguous. However, some courts invalidate clauses that give general partners too much discretion to make business decisions, rather, supplement “fair and reasonable clauses”. In some instances, court didn’t consider members are injured by general partner’s conduct because members should have used common sense and conduct due diligence, and should have known the higher probability of bad things happening.

Am I Creating a Copyright or Inventing a Patent for my Employer?

Sometimes, a creator of the work is not the copyright or patent holder, because the work is made for hire. “Work made for hire” is defined as a work prepared by an employee within the scope of his or her employment, or one of the nine specific types of work specially commissioned and agreed in writing by both parties that the work shall be considered a work made for hire.

If the hiring party or hired party is not sure whether an employment relationship exists, we look to the combination of several factors, among which are: who supplies the material, the location of the work, duration of the relationship, whether hiring party can assign additional projects to the hired party, and the hiring party’s role in hiring and paying assistants.

The nine commissioned works that may be prepared by non-employees and that will be considered to be works for hire if there is a written agreement explicitly providing it is a work for hire are: a contribution to a collective work, a part of motion picture or other audiovisual work as sound recording, a translation, a supplementary work, a compilation, an instructional text, a test, answer material for a test, or an atlas. If the commissioned work is not in one of these nine categories, it cannot be considered a work for hire. Most times it is not a clear cut case. A determination as to whether a specific work falls on this list is often times the most contentious argument between the hiring and hired party.

L-1 Visa Helps Foreign Companies Expand to the US

L-1 Visa helps foreign companies expand to the US
Most people think the L-1 Intracompany Transferee visa can only be used by foreign senior executives of established multinational companies to obtain work visa in their U.S. entities. It is not always the case. They overlooked what L-1 can do for less visible or smaller overseas businesses. If you are a manager, executive or an employee with specialized knowledge of an overseas company that seeks to expand your presence to the U.S., you may want to consider L-1 as a visa option allowing the company to establish its U.S. presence and permitting you to continue working for the same company in the US.

The L-1 applicant has to be employed by the overseas company continuously for one year during the three years prior to entering the U.S. The U.S. entity has to be the parent, subsidiary, branch or affiliated entity with the overseas company. U.S. Immigration Law sets specific definitions for "subsidiary" and "affiliate". If the U.S. company is a new entity, more documentation is required to demonstrate the validity of the U.S. extension and only one year will be granted as initial approval subject to renewal.

L-1A applicant is a manager or executive who manages an organization, department or a business unit. He must be in a supervisory role and has the authority to evaluate subordinates' performance, hire or fire them. If he does not supervise any employee, he has to occupy a very high position in the organization chart. Duration of L-1A is seven consecutive years.

L-1B applicant is an employee with specialized knowledge, which is an advanced level of knowledge or expertise with regard to the business, service, products, procedure, management, technology, or research. The knowledge cannot be general, but has to be special to the company. Duration is five years.

Unlike spouses for F-1 international students and H-1B specialty worker, spouses of L-1 may apply for work authorization. L-1 application can file green card petition. Unlike H-1B which has a 65,000 limit, there is no limited number of L-1 visas that can be approved every year. Most importantly, for India and China born applicants, little time will be spent on waiting for the visa number to be available, as opposed to roughly 5 years and more for other green card petition categories.

外国公司设立美国分公司的法律问题概略

我经常接到外国公司的电话咨询，询问如何在美国设立分公司生产、组装、销售产品。在美国设立分公司是一个复杂的过程，美国的公司法和税收体系非常成熟和健全，不熟悉情况的外国公司很难自由驾驭，不知道怎么做才能合规，也不可能预计到如果不合规会产生怎样的后果。我概括了以下需要注意的几点：

选择分公司的形式
美国50个州有自己各自的公司法，在美国注册公司其实是在适用的州注册公司，没有注册联邦公司一说。公司有多种形式，包括独立经营、合伙、有限责任、C公司、S公司等。从税收、公司法、成本等因素考虑，很多会注册C公司。C公司是与股东完全分开的公司个体，有比较成熟的权益分布和控制体系。最重要的是，公司报税发生在公司一层，与个人报税分开，外国投资者能不介入美国繁杂的税务体制是最好的选择。

选择在哪个州注册公司

通常来讲，公司应该在“主要经营地”所在的州注册，多数是公司有办公室和主要行政主管人员所在的州。如果公司的产品销售给其他州的客户，是否要在那个州注册视情况而定，多数情况下如果构成足够的经营业务是需要注册的，但有时不需要，看那个州的公司法如何界定外州公司在什么情况下需要注册。注册费通常是几百美元，还有几百元的年费。

选择公司名字

选好公司名字后，可以在州里搜索一下该名字是否已经被使用，一方面避免混淆，另一方也不要侵犯到其他公司的知识产权。一般来讲，同一个名字允许在不同行业注册。在一个州注册的公司名字并不在其他州受到保护。

注册公司商标

在美国商标专利局注册的商标、标志、品牌等可以在美国全国得到保护。很多州有自己的商标注册机制，但注册的商标只能在州里得到保护，所以外国公司应该在美国商标专利局注册商标。

注册资金

和中国严格的注册资金的要求不同，绝大多数的州没有最低注册资金一说，股东可以自由选择以怎样的形式投入和投入多少资金。财产和服务也可以作为资本投入。有时把投入资本分割成权益和债务在税务上有优惠，这就是为什么每个公司必须有注册会计师或税法律师为其提供建议。有一个例外，如果外国投资人想通过E-2通商投资签证在美国开设公司，移民法有一些特殊的资金要求需要满足。

>公司成员结构

>公司股东可以全部是外国人，董事会成员也可以全部是外国人，而且可以只有一个董事。公司主要官员是主席、副主席、财务主任和秘书。他们可以是董事会成员。他们也可以是公司员工，也可以不是公司员工。董事会、主要官员和公司其他管理机制的权力和限制应该在公司章程和BYLAW里界定好。章程是注册公司的必需材料。章程和BYLAW的起草通常由注册公司的律师来做，因为美每个州的公司法有各自不同的要求。

>办公室和场所租赁

和中国法律相比，美国在公司办公室场所租赁上几乎没有什么法律限制。可以是正式的商用办公场所，也可以是虚拟办公室，甚至是家用办公室。但是如果办公场所存放的产品是化学药物有可能产生环境污染或有毒有害气体，法律关于租赁场所有严格规定，公司必需遵守。另一个例外是，由于移民法对L跨国经理人签证的苛刻要求，这些外国公司的分公司必须要在美国租赁办公室或场地，这个要求满足不了，也满足不了签证的要求。商业租赁比名宅租赁要复杂的多，找一个资深的商用房产中介非常重要，租赁合同通常几十页，陷阱多多，建议由专业律师审核。

>各类保险

一些常用的商业保险，有的是必需购买，有的是最好购买。比如：商业租赁保险、产品责任险、董事会责任险、员工责任险、劳工赔偿险等。如果有外国员工进入美国工作或雇佣本地美国员工，还要考虑购买医疗险、人身保险、短期残废险。

税法的重要性

>美国最复杂的两大法律是税法和移民法。注册什么形式的公司和在哪里注册公司是外国公司在美国开设分公司最重要的两个门槛问题，它们的答案很多程度上取决于税法。而怎样合理地报税以在法律允许范围内最大程度上地减少上报的税又是一个和公司商业模式紧紧相关的问题。一个好的注册会计师或税法律师可以为公司的商业计划和省税起到巨大的不可忽略的作用。

为什么投资物业最好注册一个有限责任公司？

很多朋友购买地产作为租赁投资，但却很少有人去把这个物业注册为公司。投资的物业注册公司有几大益处： 当物业在一个公司名下，就与你个人的资产分开。万一你有追债人，他就不能追诉到你的物业；如果物业就在你自己的名下，万一有债务或法院裁决，你个人的资产也在劫难逃。 如果火灾水灾导致物业倒塌，或者房屋结构等其他基本住宿条件出问题导致租客暂时无法居住，你的基本物业保险大多只可以赔偿修理费用，但不会赔偿由此损失的租金，除非你购买比较昂贵的租金损失保险（rent loss insurance）。 如果物业注册在有限责任公司名下，做帐和报税时可以抵扣由此导致的损失，减少需要缴纳的税。同时，你的损失局限于这个公司的资产，不会涉及到你个人资产。 如果你拥有两栋以上的投资物业，那更应该考虑为每个物业注册一家公司。如果所有物业都注册在一个公司名下，其中的一栋物业发生法律纠纷，欠下巨额债款，那其他物业就会用来清换债款，因为它们全部在你的名下或者同一个公司名下。如果他们是独立分开的法律组织，没有发生问题的物业就会受到完全的责任保护。 这个理念就像保险的原则一样，保个太平，保个安全。

马州验房有关规定

买房一定要验房。大多数验房师会与买家签署一份合同。验房师的噩梦是忽略了应该查出来的房屋瑕疵，后来买家买下房屋后发现了瑕疵，并且该瑕疵给买家带来了损失，验房师就要承担法律责任。
验房师能不能在合同里限制自己的责任呢？马州法律规定通常情况下不可以（例外情况是一次检查CONDO里超过几个单位以上）。如果你看到验房合同里验房师把可能的法律责任限制在一定的金额范围内，这个条款是没有法律效应的。
验房师也不能在合同里限制买方上诉的时限，因为政府规定买方有三年时间提出诉讼。马州验房师必须购买25万元的责任保险，必须通过考试由州政府的验房管理局发给执照，有效期两年。
验房范围仅限于验房师眼睛可以看得见的房屋结构，验房管理局明文规定哪些房屋结构大致属于验房范围之内，哪些不属于（比如，通常验房不用爬上房顶去检查漏水）。266 CMR 1.00-11.00。不过需要指出的是，每个验房合同不用完全根据这些规定来定，验房师可以根据自身专业能力扩大和缩小验房范围。比如，如果他本身是结构工程师，他能验的东西就比不是结构工程师的要多。
好的验房合同里应该写明验房报告只是给买方使用，验房师不承担任何第三方非授权使用报告造成的损失。比如，第一个买家验房，后来这个交易没有成功，买家把报告交给第二个买家，这个买家依据报告买了房，后来发现验房师未发现的瑕疵造成损失，验房师没有法律责任，因为他的报告不对第三方负责。

麻州失业补助聆讯和上诉点滴

如果你在麻州失业，你可以申请政府的失业补助。按照法律规定，在你离开公司前，你的雇主应该提供给你麻州失业补助部（DUA-Department of Unemployment Assistance）的信息。不管你是被解雇、裁员还是自己离职，你都有权申请补助。在你申请之后几周之内，你会收到麻州失业补助部的通知，告知你的申请是批准还是拒绝。

麻州有专门法条决定离职员工是否符合得到补助的要求。如果你是主动离职，没有“其他任何迫不得已”的理由的话，通常不符合失业补助要求，“迫不得已的理由”有很多，有的员工以为自己主动辞职就放弃申请失业补助，这是不明智的行为；如果你是由于经济或商业原因被裁员的，一般可以拿到失业补助；如果你是被解雇的，问题就变得有点复杂，你是由于什么理由被解雇，如果是表现业绩不佳，还要看由什么原因引起，视情况而定；如果是违反公司规定，还要看是否由于外来的你所不能控制的原因造成，或者你是否故意违反规定。

如果你的申请被拒绝，你有权利要求一次聆讯。如果你的申请批准，你开始拿到失业补助，但你的雇主突然上诉要求取消你的事业补助，你也会收到通知，也有权利要求聆听。聆讯发生在麻州失业补助部的办公室。聆讯的目的是从雇主和员工双方了解你在何种情况下与公司分离的，以帮助政府决定你是否可以拿到失业补助。如果雇主员工双方都出席，聆讯官会给双方以问答的形式陈述事实。雇主当事人会是你的直接上司或人事部员工，一般他们会由律师或其他代理人同来。员工通常会自己来，有时也有律师或其他代理人偕同。聆讯的过程与法庭审讯有很多相似之处，聆讯官会问些基本问题，主要过程由双方律师询问自己当事人和对方当事人。双方当事人都在誓言下作证。如果只有一方出席，那就只有这一方参加聆讯。作为员工的律师，我宁愿雇主出席，这样有很多事实不清的问题可以当面得到对质。

很多时候问题关键都在一个事实的争议上，看聆讯官相信谁的证词。当事人有权利恳请聆讯官或法官出具强制令要求对方出具某些证据。有一次我当事人和雇主就她是否打了电话去取消某个班次产生巨大争议，而我的当事人就是因为她无故缺班而被解雇。我当事人坚持说她打了热线电话去请假，而雇主说没有。我们要求聆讯官出具强制令要求雇主调出当天的电话录音，而雇主的回答是“时间太长已经删除了”，我当事人很着急，我说不用急，我们赢定了，果然不出所料。原因很简单，如果事实不在我们这一边，我当事人为什么又花钱有出力地去要求强制令，不怕万一公司找不到录音谎言被戳穿吗？唯一可以解释的是真相在我们这一边。就凭我们的姿态和策略，即使对方没有给出我们要的证据（我觉得他们是故意说谎隐瞒事实），聆讯官完全看到了问题的实质所在，进行了正确的判决。

聆讯后几周会收到书面通知，如果任何一方对聆讯决定不满意可以继续申诉到失业补助部的上诉部门。上诉人需要呈交正规的法律备忘录，而法律备忘录通常只能由律师来调查和撰写。上诉部门在21天之内通知你是否受理案子，如果受理和作出决定后，任何一方再不服，可以继续上诉到地方法院。最高最后的决定部门是麻州最高法院。

由于对有关发条和聆听过程的熟悉，律师在失业补助聆听的过程中可以起到巨大作用，我们知道在什么样的情况下用什么措词问什么问题，什么时候可以让对方不经意地露出真相，而无法隐瞒事实。

公司董事法律责任概述

公司董事的基本法律责任是办事有诚意、对公司的履行职责必须是一个普通人在同样位子上也会合理履行的职责，他的行为也必需是对公司有最佳利益的决定。 权衡公司最佳利益时，可以考虑多种因素：员工、债权人、公司长期和短期的盈利目标、客户、供应商、社会责任等。
当董事做决定时自己没有一手资料，而完全依赖于其他专业人士的意见，包括会计师、审计师、律师、董事会底下不包括他为成员的委员会，或者公司高层管理人员，万一这个决定后来导致了损失，董事是免责的。
很多时候，一个小股东把董事会告上法庭，依据是由于董事会的某个错误的商业决定导致公司股票下跌，股东损失惨重。其实衡量董事是否违反法律责任，关键不是看他做的决定是正确或错误，而看他做决定的过程中是否遵循以上规定。法庭不愿意介入与公司有关经营和商务的分析，因为一个商业决定总是要权衡收益和危险的，很多时候这些都是难以预测的，这是公司的商业决定， 不应该由法官来决定。

有限责任公司LLC成员结构和义务

LLC一般由普通成员(general member)和 有限成员(limited member)组成。
普通成员就象总经理一样，会负责公司的日常运营，独立地作出很多决定。有限成员就象“幕后的投资人”，一般不会积极地参与日常运作。也就是这个原因，普通成员对公司和有限成员负有重大的受托人义务（fiduciary obligation），这些义务包括，不利用公司的资源为自己谋取利益、不能无故侵吞公司的商业机会、不能擅自经营与公司竞争的业务、对公司的运作要尽职不能随便疏忽管理等。
由于有限成员对公司有限的运作和决定权，LLC对有限成员的责任要求就没有这么大的范围和这么深的程度。
LLC成员之间最好有一个运营合同（operating agreement），把大家的责任义务如何分成等在公司经历的不同阶段都规划清楚。
以上提到的这些义务，大部分在州的LLC法规里有规定，即使没有签订运营合同，公司成员的行为也会受到法律的约束。

创业家应该注册什么形式的公司？

选择正确的公司形式往往是创业家最头痛的事情。公司不同的法律结构不但意味着公司在不同时期不同的税收待遇和利润分割，而且代表投资人和股东不同的权益分享和控制。如果公司形式选择不当，后果不堪设想，往往要花非常大的人力和财力去纠正。以下是最常见的一些公司形式的解析：
1.独立经营Sole Proprietorship
这是最简单的一种商业形式，无需注册，也没有注册金和年费，这固然是优点。缺点是个人资产不受保护，完全在债权人可以追诉的范围内。
2.合伙Partnership（两个自然人以上）
（1）普通合伙（General Partnership）。每个普通合伙人都有管理责任，合伙人个人资产不受保护。而且，每个人的行为都对合伙企业负责，每个合伙人之间产生的是连带责任。比如一个合伙人不慎使得合伙企业对外发生债务，后果是每个合伙人都要承担全部的责任。所以要慎选合伙人，合伙人数要控制。普通合伙没有注册要求，志同道合的朋友合起来进行一些商业活动，有职责和盈利的分享，这就构成普通合伙。很多情况下，普通合伙是在合伙人不知情的情况下就构成了。
（2）有限合伙（Limited Partnership）。这种形式的公司中有普通合伙人和有限合伙人。普通合伙人有管理权，有限合伙人是“安静的投资人”，一般不参与公司管理。选择普通还是有限合伙主要看各个合伙人想要参与的程度。合伙人最好要签署合伙协议，界定好每个合伙人投入分配、利润分成、权限分配，以及解散、破产、欠债、出售或其中合伙人死亡时的一些权益上的安排。合伙企业需在州内登记缴费，并需交年报和缴年费。
3. 有限责任公司LLC
LLC是很流行的一种公司形式，与合伙制不同，LLC成员可以是自然人，也可以是各类公司。美国人和外国人都可以是股东，但外国人投资征税的规定有特别规定。很多新启动的公司开始选择LLC，但是公司如果发展迅猛甚至要上市，应该转换成C公司，因为LLC不适用复杂的股东结构和发放股票期权。LLC需在州内登记注册，需交年报和上缴年费。成员间最好签订营运协议，避免之后矛盾多多。每个成员个人资产受保护，不会牵连进公司的债务。与C 公司相比，LLC没有董事会、年会等C公司所要求的复杂形式，而且，股东报税只是在自己个人的税表上。房地产和证券投资建议注册LLC。
4. 公司Corporation
（1）C 公司-需成立董事会监督管理人员工作。股东的死亡和转让股权不影响公司继续生存。股东的责任仅限于投入，公司债务和责任由公司自己负责，但是公司必需遵守一定的运营形式和手续，比如成立董事会、召开年会、每次董事会和年会都必需有详细的会议记录、公司重大决定需要董事会绝大多数董事表决通过等。如果公司不遵循一定的形式，股东的个人资产会存在危险。C 公司最大的缺点是双重征税，意思是，公司发给股东红利时要上税，公司积存下来的利润又要上税。风险投资一般只投资在C公司，而不会投入在S 公司和有限责任公司。另外，当C公司被其他公司收购时，C公司股东可以和收购公司股东无税收地交换股票，这也同样适用于S公司，但不适用与有限责任公司LLC。所以，当企业家计划公司是以被收购的方式为主要退出策略，而且想以股权的形式作为给主要员工的酬劳，应该考虑成立C公司或S公司。
（2）S公司-和C公司相似，但股东数限制在75个，可以发给员工股票和股权，但只能是一类股票，没有普通股和绩优股之分。S公司最大的优点是税收上的便利，与有限责任公司LLC一样，股东在个人税表上报税。而且它也享用前面提到的一些S公司享有的优势。S公司最大的缺点是有身份的限制，只有美国公民、永久居民和某些信托才可以成立S公司。S公司要登记缴费，有年报和年费要求。