B&K Legalities™
Legal Insights for Business Leaders
April 2012
U.S. Tech Startups: Pending Legislation on American Global Entrepreneurs, Job-Creators and Innovators. In the 2012 election year after nearly four years of global recession, U.S. businesses continue to face challenges arising from globalizing. In a global economy, the ability to plan and implement a global workforce is essential to developing new products and services, supporting local sales in target markets and gaining market share in mature economies and emerging markets. Legislators and policy makers conflict on whether to regulate more to protect domestic labor or to promote new U.S. global enterprises adaptive to global demographics and individual market conditions.
For startups and global U.S.-based entrepreneurs, several legal and regulatory frameworks are under consideration in this Presidential election year. As a planning framework for our clients and colleagues, we offer the following summary of some significant draft U.S. legislation relating to global entrepreneurship, tech startups, private equity and the U.S. regulation of business generally. Several new opportunities for American job growth through entrepreneurship could support new businesses that are purely local but also that “go global” rapidly. Click here for the complete article.
“Emerging Growth Companies” under Jumpstart Our Business Startups Act (2012). On April 5, 2012, President Obama signed the “Jumpstart Our Business Startups Act,” H.R. 3606 (112th Cong., 2nd Sess.), aka the “JOBS” Act. This law identifies an “emerging growth company” (ECG) as a company with a total annual gross revenues of less than $1 billion during its most recently completed fiscal year. This “JOBS” Act will provide temporary regulatory relief to small companies, which should encourage them to go public and yet ensure their eventual compliance with regulatory requirements as they grow larger.
Since this will substantially change the federal securities laws, click here to get more details of what to expect in the near future.