, enjoy this mixed bag

The September 2023 Newsletter

Greetings!

Fall is upon us. Well, almost, not yet ... so hold all things pumpkin spice until the 23rd.

We hope you settled back into the routine after the summer vacation.

This newsletter covers the Capital Contributions recommended for a Corporate Loan.

Did you watch the summer movie hit "Barbie"? Take a peek at the Mornign Musing.

The Bureau of Economic Analysis is collecting data on foreign-owned entities. Have you completed and filed form BE-12 for your business?

Read more in the newsletter below!

Best wishes.

Reinhard von Hennigs &

Your Team at BridgehouseLaw LLP

Image by FreePik

Morning Musings

As you may know, Reinhard von Hennigs has been musing about current events and topics for over three years. The second book has been published and is now available on amazon.com. You can go ahead and order the book here.

In the meantime, do check out the Morning Musing library on YouTube.

Capital Contribution Recommendations for Corporate Loan

For a foreign corporation seeking to create a subsidiary in the United States, the process is relatively simple. In fact, there is no minimum capital contribution required, which means a corporation can be formed with just $1 of initial capital. However, while there might not be a minimum contribution to create a US subsidiary, it may be worth contributing a larger amount in order to secure any future loans for the corporation.

Lenders want to make sure that the loans they lend will be repaid, and they will look at a number of factors to determine whether or not to approve a loan. These factors range from credit rating, industry risk, and debt-service coverage ratio (DSCR). The DSCR measures a corporation’s available cash flow to pay its current debt obligations. If a corporation has a DSCR of 1.0, that means the corporation has exactly enough operating income to pay off its debt. Therefore, lenders will usually set a minimum DSCR requirement of 1.2-1.5. By increasing its initial capital contribution, a corporation can show lenders that it has adequate cash to pay off any debts accrued.

Finally, a good rule of thumb for corporations is to have enough capital to cover its costs for six to eighteen months. However, every corporation is different, and each corporation should base its decisions on its personal business needs and goals.

By contributing greater than the minimum amount of initial capitalization, corporations put themselves in a better light for lenders and increase the likelihood that they will be able to receive corporate loans.

BridgehouseLaw is happy to help you navigate company formation.

The "Barbie" Movie and Aqua's "Barbie Girl"

Have you seen the Barbie movie? If not, you must have heard about it or seen something. It's a global hype.

I watched flocks of people, mostly dressed in pink, at the box office. And I know which movie they wanted to watch.

But if you saw it, did you wonder why the Aqua song from the 1990s Barbie Girl was only played for seconds and not used as a significant theme song?

In the grand picture of pop culture, a few pieces have captured the imagination quite like Aqua’s Barbie Girl. What began as a catchy tune quickly spiraled into a whirlwind of legal battles. Yes, it ended up at the United States Supreme Court. Music in the courtroom. That's nice. This strange and true story not only offers a great glimpse into the complexities of intellectual property but it also underscores its importance.

For the full Morning Musing, please check out our YouTube channel.

Bureau of Economic Analysis and Its Forms

The Bureau of Economic Analysis (BEA) is a federal agency of the United States Department of Commerce. The BEA produces economic statistics regarding US GDP, foreign trade and investment, and other industry data. Specifically for foreign business, the BEA collects its data by having corporations file several mandatory forms for various purposes. These forms are collected to measure the amount of new and current foreign direct investment in the US, which can then inform the US government on its economic policy decisions. Some of these forms include the BE-13, BE-15, and BE-12.

If a corporation has more than 10% foreign ownership, it must file a Form BE-13 within 45 days of its formation. However, if it costs less than $3 million to create or acquire the new corporation, then the corporation files a BE-13 Exemption Form.

BE-15 Forms are mandatory annual reports of a corporation’s financial statements. These forms are based on total assets, gross operating revenues, and net income. Corporations reporting greater than $300 million on any of these metrics file Form BE-15A, between $120-300 million file Form BE-15B, between $40-120 million file Form BE-15C, and if a corporation reports revenues less than $40 million it files a BE-15 Exemption Form.

Finally, the BE-12 Form is the most comprehensive financial and operating data survey for foreign-affiliated corporations and must be filed every five years. Like the BE-15, BE-12 forms are split based on income range, with BE-12A for revenues greater than $300 million, BE-12B for between $60-300 million, and BE-12C for revenues under $60 million.

These forms are mandatory for corporations and are essential for the BEA to have the most accurate understanding of foreign investment in the US. Because of their significance, an experienced international accounting firm will likely file these forms as part of their routine services.

Lucas Tappa, Law Clerk, BridgehouseLaw Charlotte

The Pickleball Craze

Pickleball is America's fastest-growing sport. It has captured the hearts of millions. Pickleball is a paddle sport that combines elements of tennis, badminton, and table tennis. It's played on a smaller court than a tennis court but on a lower net. Tennis is played on a larger court with a higher net. It has a different racket design and so on. In terms of gameplay, pickleball is characterized by a slower pace. There's an emphasis on strategy and placement, which makes it popular among players of all ages. Pickleball is a competitor to tennis, which is fast-paced, and therefore, it requires a higher physical endurance, and age is a limit in a fast tennis game.

The equipment also differs. Pickleball paddles are smaller and made from wood, graphite, or composite materials. And therefore you need special pickleball equipment. But pickleball is not all about fun and games. With its rising popularity, this sport leaves a trail of injuries, particularly among seniors. This results in a hefty financial burden on the healthcare system.

To get the whole story on Pickleball's impact on the health care system, check about the Morning Musing on our YouTube channel.

Our friends at Davidson College asked us to share this invite with you:

Original Series “SAM - A SAXON”

Inspires Landmark U.S Educational Tour from Leading Cultural and Political Institutions

Los Angeles | New York | London | Berlin, 6 September – “SAM – A SAXON”, based on the incredible true story of Samuel Njankouo Meffire, East Germany’s first Black policeman, will be at the center of an historic U.S Educational Tour hosted by leading political and cultural institutions this September.

Spearheaded by the Black German Heritage and Research Association (BGHRA), in association with the German Embassy Washington, Goethe Institute, and Fremantle-backed Big Window Productions, a label of UFA Fiction, the U.S Educational tour is a landmark cultural event to help highlight the groundbreaking impact the series has had on the Afro-German and Black communities – and the opportunities it sets out to create for underrepresented and underserved voices in the industry.

Visiting several states, the U.S Educational Tour will commence in Davidson, North Carolina, before moving onto Chicago, and concluding in New York, where some of the country’s leading institutions will host an exclusive week-long series of student masterclass workshops and exclusive screening events including:

1. Davidson College, Monday 18 September- Duke Family Performance Hall

2. University of Illinois Chicago, Wednesday 20 September - Goethe-Institut Chicago

3. Columbia University School of Journalism, Friday 22 September - Goethe-Institut New York

The seven-part series available to stream exclusively on Hulu follows “Sam” (Malick Bauer) who joins the police force after his father’s murder. After the fall of the Berlin Wall in 1989, he becomes the face of an anti-racism campaign and a media sensation, catapulting him into a newly formed police squad with the mission to squash the rising tide of neo-Nazis in the post-communist East. His fame and success as a Nazi-hunter is not appreciated by everyone. His journey takes a dark turn, and he eventually finds himself framed as an internationally wanted criminal and branded Germany’s ‘public enemy number one’.

Through Sam's eyes, the series allows audiences to experience his fight for recognition, justice, and a place he can call home in the wild years following German reunification.

“Sam – A Saxon” combines an outstanding and diverse team both behind and in front of the camera with the following talents confirmed to participate on the U.S educational tour:

· Samuel Meffire

· Malick Bauer (as Sam Meffire)

· Ivy Quainoo (as Jenny) also star of “The Voice Germany”, and Germany’s “Hamilton”.

· Paula Essam Baumert (as Sabine)

· Jörg Winger – Creator, showrunner, head writer, executive producer

· Tyron Ricketts – Creator, actor, executive producer

· Chris Silber – Creator, head writer, executive producer

Rosemarie Peña, Ph.D., President of the BGHRA & Emily Frazier-Rath, Ph.D, BGHRA Executive Director of Education Initiatives, and Visiting Assistant Professor of German Studies at Davidson College, commented:

“It is indeed with honor and great pride that the Black German Heritage and Research Association (BGHRA) presents the cast, production team, and the real-life inspiration for the groundbreaking Hulu series, “SAM – A SAXON”. We hope that the U.S. university tour will provide students as well as faculty, staff, and community members a memorable experience meeting and learning from some of the talents behind this groundbreaking show. In the spirit of transnational community-building and fostering mutual respect and support, we hope this tour promotes the exchange of ideas and flow of creative work.

In the telling of Sam Meffire’s powerful story, the series sheds a brilliant light on a multicultural Black diaspora community that has long been underrepresented in German media. Importantly, the series has significant implications for the U.S. community of Black Germans, who have been rekinning with their families and counterparts in Germany over several decades. It’s a joy to be finally seen.”