Independent Contractor or Employee? How to Legally Classify Workers Virtually every young company struggles to properly classify workers as independent contractors or employees. Initially, when everyone involved in a startup is working on a part-time basis and pursuing other interests, it is easier to justify an independent contractor designation for most workers. But as the…
Founder disputes are one of the most common risks to a young company, but it doesn’t have to be that way. Whether it is a disagreement over a core issue or the waning interest some experience along the startup road, most companies face turnover in their early days, with key players rotating in and out….
Both C-Corporations and S-Corporations are, at their core, corporations that are formed at the state level. The formation process, structure, and governance are usually identical for both. The two big differences are: Tax law is what sets the differences between C-Corporations and S-Corporations. In fact, the name of each comes from Subchapter ‘C’ and Subchapter…
An S-Corporation can provide significant Federal income tax savings over a C-Corporation. A common question that arises is, “If the benefits are so obvious, why aren’t all corporations S-Corps?” Due to the benefits, the IRS places restrictions on S-Corporation ownership, including the types of shares that the corporation can issue and the types of shareholders…
Understanding Corporate Structures: A Guide to C-Corporations and S-Corporations Tax Implications Tax law sets the difference between the C-Corporation and an S-Corporation. When a corporation is formed at the state level, the C-Corporation is the default. The C-Corporation can then, voluntarily, file an election form with the IRS (Form 2553) to become an S-Corporation. Once…
The Corporation is rigid in how it is structured and run. This is due to laws, rules, and general practices that have existed and worked well for years. The great thing about a corporate structure is that it scales very well. From the smallest of companies to the largest enterprises – there is a common…
Here is a video link to Dun & Bradstreet’s hangout session from January 22, featuring Jeffrey Bekiares. This session features insights into what makes a successful crowdfunding campaign–including rewards and equity based. Jeff’s perspective focuses equity crowdfunding and crafting the right approach to a winning campaign. Equity crowdfunding is similar to rewards in many ways, in…
How Do I Form My Entity in Georgia? The following are general, step-by-step instructions on properly forming your Company (Business Entity) in Georgia. If you have any questions through out the guide please feel free to contact SmartUp. Consult with an Attorney for Free REQUIRED ITEMS: 1.) Company Name. Decide on the Entity’s Name Consider the following…
A business thinking through the best way to sell a successful equity crowdfunding campaign should remember these two important points: If you are interested in more detail related to your specific situation it is best to speak with an attorney. Schedule a consultation with a Founders Legal Intellectual Property attorney
Now, in Georgia and a growing number of states, so long as a company is planning to keep a securities offering local (with all investors –both accredited and non-accredited – coming from the same state in which the company is formed), a company can freely pitch an investment offering to anyone, as long as the…
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