How the Federal Government Taxes LLCs
One of the benefits to using a limited liability company is the flexibility of being able to choose how the entity is taxed. After a new LLC is formed, its owners must decide the method by which they would like…
Strictly Business
A legal blog on private funds, startups, and venture capital.
Strictly Business
A legal blog on private funds, startups, and venture capital.
Tag Tax
Obama’s Proposed American Jobs Act Contains Tax Increase on Private Fund Managers
The American Jobs Act, recently proposed by President Obama, contains a provision closing the co-called “carried interest tax loophole” that benefits many investment fund managers. Just about all hedge funds, real estate investment partnerships, private equity funds, and venture capital…
Even in deals with “yourself,” you still need proper legal documents.
One situation I often encounter with small businesses is that sometimes they don’t always document the transactions they enter into with their owners and other related parties. For instance, let’s say that two owners of a corporation decide that their…
There is no such thing as a “1099 employee.”
Business owners will often say that they hired someone as a “1099 employee.” What they actually mean is that the business came to an arrangement with a worker that deems him to be an independent contractor, and as a result,…
9 Reasons Why Your Business Needs a Buy-Sell Agreement
In any business with multiple owners, there is a good chance that, at some point, one or more of those owners may no longer be affiliated with the company, whether by choice, death, bankruptcy, or divorce. It’s important for business…