SAFE Financing for Start-ups

By their very nature, high risk investments are the most likely to provide opportunities for high returns. Private equity stakes in small businesses with strong growth potential can be especially rewarding. For this reason, seed accelerators like Y Combinator (YC) agree to provide seed funding for start-ups that can prove their potential. YC, in particular,…

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New IRS Guidance for Foreign Banks and Withholding Agents

The Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 to combat tax evasion by Americans using Swiss bank accounts and hiding other financial assets overseas. FATCA requires Foreign Financial Institutions (FFIs), including banks, mutual funds, and hedge funds, to report information about American accounts to the Internal Revenue Service. FFIs that do not…

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The Empowering Employees through Stock Ownership Act

Sweat equity is the term used to refer to an employee’s labor that is invested into an asset as opposed to equity bought with capital. Ideally, it would be fair for all employees whose sweat equity increases the value of a private company to share in the ownership of that company. But under current tax…

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Trump’s Tax Proposals for the New Year

President-elect Trump has proposed to simplify the tax code after his inauguration in 2017. His tax plan is available on his campaign website, aided by his various statements concerning tax reform which are contained in other press releases. To reduce complexity, Trump would eliminate the personal exemption and head of household filing status. He also…

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