Most entrepreneurs who form an LLC or incorporate a business are not aware of their tax and government filing requirements. Entrepreneurs often think there are no filing requirements because they are in the startup phase and there is very little or no financial activity. Unfortunately, this often costs the startup thousands of dollars in penalties and can really mess up a future angel financing or venture capital financing.
To help those legalese challenged, we took the 10 most common terms found in a typical Venture Capital (VC) term sheet and tried to explain them very simply. Many of these terms can take on many different meanings, though, so we tried to use the most typical definitions.