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How to split startup equity between startup founders when starting a new business

The Startup Magazine

At that point, the options are converted just before the sale, and the shares are then sold with the rest of the firm. To keep things simple, we’re skipping over possible capital gains taxes. . As a result, you will have no dividend or voting rights until you convert your options to stock.

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Legal – How Real Estate Lawyers Support Business Clients

The Startup Magazine

Due to this value, legal controls on the sale, purchase, and maintenance of real property are numerous and real estate legal help is warranted for business real estate transactions. Property owners must pay a few different kinds of property taxes, such as capital gains tax, estate tax, or rental income tax.

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Top 29 Startup Posts May 2010

SoCal CTO

Through advertising or direct sales, these sites harvest intent. Instead of making a few dollars per sale and hoping for thousands of sales, you sell to only a few customers, and charge much higher rates. Tech support is sales. they have purchasing intent ).*. But the rates are high for a reason. Yep, that sounds lowly.

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7 Tax Planning Strategies for Small Businesses

The Startup Magazine

After all, navigating through State, Federal, income, corporate, and sales taxes is no cakewalk. Sole proprietors and partnerships only have to pay tax on their income, waiving off the corporate and sales tax from their financials. These costs include capital gains, investment returns, and retirement proceeds.

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Understanding Stock Options

YoungUpstarts

Profit from ISOs have the potential to be taxed as long-term capital gain, which is a considerably lower rate than NQSOs, which are generally taxed as ordinary income. Any proceeds from an exercise or sale become subject to taxation at the lower, long-term capital gains rate rather than ordinary income rates.

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Obama proposes no capital gains tax on qualified small business stock

Startup Company Lawyer

The budget proposal would modify IRC Section 1202 to provide for a complete exemption from capital gains tax for qualified small business stock issued after February 17, 2009 and held for five years, and the amount excluded would not be added back for alternative minimum tax purposes. Current Law. Reasons for Change.

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[Infographic] How Do Taxes Affect Your Startup?

YoungUpstarts

On top of that, there’s the usual sales tax and capital gains tax to cover. Property tax is another type of tax commonly paid by startups, especially those who have invested in their own office buildings or commercial properties. This infographic by Villanova University explains all the taxes in detail: