Last week’s post discussed some important tax issues entrepreneurs should be aware of when forming and operating California partnerships. As we discussed, one of the most important factors to consider when forming a new enterprise is whether the business is initially expected to generate profits or losses and the tax consequences of those profits and […]
Tax Treatment of Equity Compensation
Federal and state tax codes can take a big bite out of your company’s equity compensation. That’s why founders, executives, and employees of start-ups should understand the role that Internal Revenue Code Section 83 plays in the tax treatment of equity compensation that is given in exchange for services. Most startups use equity incentives instead of cash, at […]
Final SEC Rules for Raising Money via Crowdfunding
If you have been considering raising money via crowdfunding for your startup or small business, you may already know that this has been somewhat of a gray area in securities law. Back in 2012, Congress passed Title III of the Jumpstart Our Business Startups Act (“JOBS Act”). Since then, the Securities and Exchange Commission (“SEC”) […]
Crowdfunding for Businesses and Impact of Government Regulations
Crowdfunding is a new and evolving fundraising tool social entrepreneurs use to raise money for their ideas and causes via the Internet. If regulated correctly, crowdfunding could become a powerful alternative method that for-profit entrepreneurs could use to raise capital to support a wide range of ventures and business models. To encourage the use of […]
Challenges to Raising Money Through Social Media While Complying with the JOBs Act
In September 2013, Title II of the JOBs Act went into effect. For the first time private companies could lawfully raise investment capital from the public using Social Media to spread the word about the investment. More and more, Social Media is driving the capital raising process for small businesses across the U.S. The enactment […]