The SAFE, or Simple Agreement for Future Equity, and the KISS, or the Keep It Simple Security, have become a popular way for early stage companies to raise money.   These securities were intended to be simple, low-cost alternatives to convertible debt.

The Tax Cuts and Jobs Act of 2017 provided significant changes to the net operating loss (“NOL”) system for corporate and individual taxpayers.

The Tax Cuts and Jobs Act of 2017 may consist of more than 1,000 pages of statutory text and committee explanation, but the top headline is simple: “21% Corporate Tax Rate.”

The Tax Cuts and Jobs Act of 2017 (“TCJA”), the most significant revision of the U.S. income tax laws in 30 years, is now the law of the land.

On July 25, 2016 the Internal Revenue Service issued final regulations that eliminate the need for taxpayers to attach a copy of an 83(b) election to their federal income tax returns for the year in which the property subject to the election was transferred, thus clearing the way for such taxpayers to file their income tax returns electronically.

We are frequently asked the “choice of entity” question for startup companies; that is, whether a client’s newly-formed company should be an LLC or a corporation.

As we often do, let’s start with some good news.  We have a new partner, Tom Greene, who has been practicing in employee benefits and executive compensation for almost 20 years. 

As most immigration attorneys, private client attorneys, and other advisors know, a foreign citizen or national is considered a U.S. tax resident if he or she meets the “green card test” or the “substantial presence test.”

This edition of The Issue Spotter concerns how to avoid phantom income on the conversion of bridge notes with accrued interest. The common scenario is that, in anticipation of a round of VC financing, a company raises cash in exchange for “bridge notes.”

It seems like every year I send an urgent newsletter advising corporate transactional lawyers that an 11th hour tax bill has opened a short window for some tax-advantaged transactions, and 2014 is no different. 

You have likely heard of the tax benefits of an LLC or other tax partnership issuing “profits interests” to executives and other service providers.

Earlier this month, Travis was featured in the BNA Daily Tax Report, speaking about the implications of the Sun Capital case.  In Sun Capital, the First Circuit Court of Appeals surprised most of the tax world in ruling that, for ERISA purposes, a private equity limited partnership was engaged in a “trade or business.”

Most will agree that the technical tax allocation sections of most partnership agreements or LLC operating agreements are just unreadable.