Startup Company Lawyer

MAY 13, 2009

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.

Capital Gains 47

Capital Gains Stock Small Business Redemption 47

Gust

MAY 18, 2015

Three outcomes dominate exits of angel-funded companies: Dead bugs – Startups that go out of business, returning less-than-invested capital to angels (usually zero). Positive exits – Companies that liquidate with capital gains to investors, usually via a cash sale to a larger company.

Capital Gains 70

Capital Gains IPO Sales Startup 70

Gust

MAY 18, 2015

Three outcomes dominate exits of angel-funded companies: Dead bugs – Startups that go out of business, returning less-than-invested capital to angels (usually zero). Positive exits – Companies that liquidate with capital gains to investors, usually via a cash sale to a larger company.

Capital Gains 70

Capital Gains IPO Sales Startup 70

YoungUpstarts

JANUARY 26, 2017

Short-term capital gains (assets held for sale or exchange for exactly one year or less) are taxed at your ordinary income tax rate, and long-term capital gains are taxed at either 0, 15 or 20 percent. Stock investing tax deductions are limited to losses and payments for education and/or advisory services.

CPA 100

CPA Capital Gains Stock LLC 100

paulgraham.com

SEPTEMBER 23, 2012

September 2012 A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, or take venture funding, or have some sort of "exit." Everything else we associate with startups follows from growth.

Startup 111

Startup Technical Review Software Review Acquisition 111

www.seriesseed.com

DECEMBER 9, 2012

Good idea, I think this will benefit lots of startups and some angels. Long term capital gains possible for early exit. Ted: Great service to the startup community! Specifically it would benefit from a clause nullifying these drag-along rights in case of a proposed sale to a preferred-affiliated entity.

Finance 40

Finance Term Sheet Vesting LLC 40

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. Most venture-funded startups have different classes of stock: common and various flavors of preferred.

Equity 56

Equity Employee Vesting Preferred Stock 56

Scott Edward Walker

DECEMBER 14, 2015

One of the biggest mistakes I see startups make is failing to set-up vesting schedules for the founders. Below is a short clip from my legal workshop “ The 5 Biggest Legal Mistakes That Startups Make ” and a few FAQ’s. www.youtube.com/watch?v=-R01YcgJ3Yw v=-R01YcgJ3Yw What Is a Vesting Schedule?

Vesting 40

Vesting Founder Stock Cofounder 40

Startup Company Lawyer

JULY 20, 2009

Founders of startup companies often wait to incorporate a company until they are confident that their concept is viable or fundable. Trying to clean up pre-incorporation promises to grant equity in a startup company is a painful task, especially if founders part ways before there are formal documents in place to deal with the situation.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

K9 Ventures

MARCH 23, 2011

It’s a tough tough job to be running a startup and you need to have people who are willing to listen, provide useful input, and sometimes a different point of view. When an investor buys equity in a priced round, the capital gains clock on that stock starts as of the date of investment. and it is a positive outcome.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? Convertible debt is a venerable instrument, originally created to “bridge” a later-stage startup from one VC round to the next quickly and easily. Convertible debt? Convertible equity? As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won.

Finance 134

Finance Convertible Security Equity Seed Stage 134

Both Sides of the Table

MAY 24, 2021

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. Our goal is to produce a $10 billion+ winner and remain the market leader in this SaaS category of AI in Sales & Marketing.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

The Startup Lawyer

JANUARY 19, 2010

2) receive long-term capital gains treatment for taxable gain at the stock sale (instead of ordinary income tax rates). In order to receive the tax benefits of ISOs, the startup and stock option holder must comply with various rules. Only employees of the startup can receive ISOs. Continuous Employment.

Stock Options 40

Stock Options Stock Capital Gains Employee 40

Scott Edward Walker

APRIL 9, 2012

Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. Why Can’t a Startup Issue Shares of Common Stock to Investors? price the round). Speed, simplicity and cost.

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Austin Startup

FEBRUARY 3, 2019

is vital to our startup ecosystem here. And I hope these lessons have an impact beyond Austin angels and startups as well. We are in 62 startups and 19 VC funds now ( our portfolio ), and I have some good data at this point on how profitable our endeavors have been, so I feel pretty qualified to share these lessons with you.

Angel Investor 48

Angel Investor Advisory Board Equity B2C 48

www.seriesseed.com

MARCH 2, 2010

For this reason, I’ve not included a Right of First Refusal and Co-Sale Agreement or a Voting Agreement, both of which are typical in a Series A financing. Yet amidst all these other dramatic changes, one aspect of startup life has not changed at all: the legal documents used for financing these transactions.

Finance 58

Finance Term Sheet Equity Aggregator 58

Up and Running

APRIL 29, 2014

This is important because it means you should be tracking your sales and profitability all year long, and determining that your business has extra cash to spend as early in the year as possible, so you can plan for how to spend it in the most tax-efficient way possible. The last one here is your long-term capital gain.

.Net 85

.Net Capital Gains Distribution Puerto Rico 85

Both Sides of the Table

AUGUST 30, 2010

The housing market is not recovered : Sales in existing homes in the US fell 27.2% Sales fell in every region of the country with the Midwest suffering the worst at 35%. This affects M&A activities for startups, which with the reduction of the IPO market could spell lower returns in the short-term for technology startup investors.

Entrepreneur 298

Entrepreneur Technical Review Balance Sheet Government 298

Both Sides of the Table

OCTOBER 30, 2011

In case you don’t know, “the “9-9-9 plan” would replace all current taxes (including the payroll tax , capital gains tax , and the estate tax ) with 9% business transaction tax; 9% personal income tax rate, and a 9% federal sales tax.” It is simple and easily explained. Is it good policy?

Utah 289

Utah Differentiation Campaign Mexico 289