Nicholas Lata

A Preeminent Workers’ Compensation Defense, Business,Estate Planning/Probate and Real Estate Firm

Nicholas P. Lata, Esq.

Attorney Lata is an experienced corporate attorney, business counselor and negotiator. He is equally comfortable representing both startup companies and established businesses in corporate and business counseling as well as energy law, taxation and commercial lending.

After graduating from Brandeis University in Waltham, Massachusetts in 2005 with a BA in political science, Attorney Lata went on to receive his Juris Doctor from The University of Connecticut School of Law in 2008. While at Brandeis, he played varsity baseball and rugby, and is a former all New England and all state rugby player.

From 2010–2017, Attorney Lata was in practice with a large law firm in Springfield, where he represented a variety of small, medium and Fortune 500 companies in all aspects of their legal needs, including counseling startup companies through capital raises to guiding more established companies through business and real estate acquisitions, commercial lending, employment matters and negotiations. He even guided businesses through successful appearances on the television shows Shark Tank and Good Morning America.

Prior to that, from 2007–2010, he was a tax consultant for Ernst & Young in Hartford, Connecticut, providing tax planning and transactional advice to corporate clients about state, federal and international tax issues, and successfully applied for multi-million-dollar grants for renewable energy products on behalf of a Fortune 500 technology company.

Attorney Lata is a member of the Massachusetts, Connecticut and Hampden County bar associations. He is also a member of the Springfield Regional Chamber of Commerce Legislative Steering Committee on Energy Law.

Startup Blog

Formation: Why Do I Need to Incorporate My Business?

One of the first steps in starting a business is to choose the best type of legal entity.  There is no legal requirement to incorporate your business.  An individual can operate a business as a sole proprietorship and a group of individuals can operate a business as a partnership.  A sole proprietorship or a partnership can even operate under a …

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Formation: Choice of Entity

The two most common types of legal entities are LLC’s and corporations.  The three main considerations in choosing between the two relate to corporate governance, taxation and flexibility. Corporate Governance: Corporations are typically required to have meetings, take meeting minutes and engage in other corporate formalities. Conversely, state laws regarding governance of LLC’s are far more relaxed.  For less sophisticated …

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Top 8 Reasons to Use a C Corporation If You are Gearing Up For a Venture Capital Deal

Despite all the advantages highlighted in earlier posts relating to using an entity with less corporate formalities (LLC’s) and/or pass-through tax treatment (LLC’s or S corporations), there is one obvious situation where you are better off using a C Corporation (“C Corp”): venture capital deals.  Below are some of the primary reasons this is true: Settled Law: Laws governing fiduciary …

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Drafting Corporate Governance Documents

Once you have formed a legal entity, you are not done yet.  You still need to prepare detailed organizational documents governing your business and its owners.  Below is a list of some common types of entities and the appropriate corporate governance documents: Limited Liability Company:  LLC’s are governed by an Operating Agreement.  Operating Agreements primarily address (i) the designation of …

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Top 7 Provisions to Understand in Your LLC Operating Agreement

As mentioned in other articles, LLC’s are governed by Operating Agreements.  This article is based on the assumption that the LLC has two or more members and that it is treated as a partnership for federal income tax purposes (meaning that it has not elected to be taxed as a corporation).  You should always read and understand all of the …

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Top 5 Tips for Raising Venture Capital

In their infancy, most startup companies lack the requisite credit history and hard assets to obtain conventional bank financing.  As a result, if the business does not generate sufficient cash flow to maintain its operations, it may be necessary to seek out funds from angel investors or venture capital groups.  One disclaimer here is that I strongly recommend that you …

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Understanding Convertible Notes

It is becoming less and less common for investors to invest in companies in exchange for equity ownership.  It is simply too difficult to value the average startup company that hasn’t even gotten its product or idea to market yet, let alone generated a profit.  Since virtually all the conventional valuation methods are based on the assets, earnings or cash …

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Conversion of a Convertible Note

Determining how much equity the convertible note holder receives is relatively complicated.  Assuming conversion is triggered by a Series A, the first factor is the valuation used for the Series A.  If the Series A investor buys 2,000 shares (and the company originally has 10,000 total issued and outstanding shares) for a $1,000,000 purchase price ($500 per share), this sets …

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Know EXACTLY How Much Stock You are Selling When Negotiating a Series A

After a company raises funds from an angel investor through a convertible note, the next progression is generally to get their product or service to market and attempt to lure a larger investment in the form of a Series A.  This is typically a more complicated transaction with serious long-term implications for the company and its founders.  I will address …

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