- Tax ID or EIN
- Fiscal Year End
- Board of Directors
- Principal Security Holder
- GAAP Financials
- Liquid Market
- CIK & CCC Codes
- Articles of Incorporation
Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification.
The business’ fiscal year is any twelve-month period that the company uses for accounting purposes. It can be the end of any quarter, but it's most often December 31st.
Like an option, warrants grant the right to buy stock at a certain price in the future. Unlike options, warrants (and the shares they convert into) are always issued by the company itself.
The Board of Directors have a fiduciary responsibility to guard the interests of the shareholders of a company.
The board makes decisions on major strategic issues, and can often (but not always) fire the CEO.
In an early stage startup that has just raised a Series A, it's most common to have thee board members: two appointed by the founders, and one by the venture capitalist. Usually at each major subsequent round of funding, another board seat is created.
The SEC requires that the majority of the Board of Directors sign the Form C to fundraise on Wefunder.
Someone who controls 20 percent or more of a companies voting power.
The law requires that financials used in a Form C follow the Generally Accepted Accounting Principles (GAAP) format. This includes an income statement, balance sheet, cash flow statement, and notes to the financial statements.
This article provides an in-depth synopsis of GAAP requirements.
The degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price.
Securities sold in Regulation Crowdfunding offers are not liquid.
A Central Index Key (CIK) and the CIK Confirmation Code (CCC) are used by the Securities and Exchange Commission to identify companies. We use it to file Form C's in the SEC's EDGAR system.
Also referred to as a certificate of incorporation, this is the legal document establishing the existence of a corporation. It's typically filed with the Secretary of State.