The Dumbest and Most Dangerous Startup Financing

Dumbo Corp is a 2-year old startup that recently started selling product to a few large customers.  They have 30 employees and a $250K monthly payroll.  The employees are paid on a monthly basis and Dumbo runs its own payroll through QuickBooks.    Recently, Dumbo ran into...

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VC Term Sheet Lingo

To help those legalese challenged, we took the 10 most common terms found in a typical Venture Capital (VC) term sheet and tried to explain them very simply.  Many of these terms can take on many different meanings, though, so we tried to use the...

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UPDATE: Carried Interest. Inter-Partner Loans

As a follow-up to our recent post regarding the proposals to tax carried interest as ordinary income, there is a significant tax planning opportunity for service partners (partners actively providing services) who have inter-partner loans.  Our discussion covers President Obama’s American Jobs Act of 2011...

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Carried Interest Tax Debate: Here We Go Again

President Obama released his FY2013 budget plan on Monday, February 13, 2012.  As expected, it contained the usual assaults on the 1% of taxpayers (Adjusted Gross Incomes above $344K) who are already paying close to 40% of the total personal taxes collected. One of the “usual...

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