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.
Limited Liability Companies (LLC), under most states, are required to be governed by an operating agreement. This article addresses some of the key considerations of a LLC or Partnership agreement for founders.
This article covers a general checklist for the implementation and compliance of the General Data Protection Regulation (GDPR). Under GDPR, personal data may be considered as being collected from the data subject, where: A data subject consciously provides personal data to a controller (e.g., when completing an online form) -or-