Knowing the key issues and terms to negotiate any business deal and business contract is an essential factor for a company’s growth and success. This article addresses some key considerations and important tips a business owner or key executive should consider when negotiating a business deal.
Employment agreements and offer letters are often used interchangeably when hiring employees. Although offer letters and employment agreements share some characteristics in common, they are not the same. For an early-stage or startup company, correctly using the employment agreement and offer letter can help to prevent unnecessary and unanticipated liability
Taxation of stocks can be a complex tax item for a company and its stockholders. This article addresses some of the key points and considerations on taxation of stock dividends, taxation of stock sales, and taxation of stock redemptions. Payment in Kind Dividends’ taxation is based on whether they are
A restrictive covenant, whether it is a stand-alone document or part of an employment agreement, is often used in preventing an employee from working for a competitor (non-compete), misappropriating a company’s trade secrets or other confidential information (confidentiality or non-disclosure), soliciting customers, or soliciting other employees to leave the company (non-solicitation).
Trademark can include sounds, smells, colors, and/or shapes. A Service Mark refers to a trademark used for services. Website domain used as a trademark. Trade name can function as a trademark. Trademark protection is often used by a business to protect its brand name and generate good will. What many
A multinational company with a presence in countries outside of the United States, while doing transactions amongst its subsidiaries and affiliates, needs to be aware of transfer pricing rules. Under U.S. tax laws, the transfer pricing rules in IRC Section 482 are designed to prevent the artificial shifting of taxable
Dilution of Owners’ Equity and anti-dilution terms can be a very complicated subject for investors and startups. This article takes an overly simplified approach and focuses on dilution and antidilution in investment and how startup equity finance impacts owners’ equity. The first subject matter will be what is dilution and
A capitalization table (cap table) is needed when presenting to investors the structure of the company’s equity pre and post-investment Money. It easily identifies pre-money valuation and post-money valuation, and provides information on which parties own which classes of shares, warrants, options and other rights to purchase equity over time.
Taxation strategy is one of the key considerations when forming and funding a startup business. This article addresses key considerations of capital contribution tax on structuring a tax-free transaction for the stockholder(s) when contributing cash or property to a corporation in exchange for stock from the corporation. Such tax-free contribution is addressed under Internal Revenue Code Section 351.