Business Formation

The Internal Revenue Service (IRS) has finally issued final regulations on the tax treatment of non-compensatory options and convertible instruments issued by a partnership. These rules are particularly interesting to companies that have formed as LLCs taxed as a partnership for tax efficiencies but have...

Convertible Debt in an S Corporation Because S corporations cannot issue preferred stock, they will often give investors convertible debt that attempts to mimic the preferences they might obtain through preferred stock. However, unless carefully structured, the issuance of convertible debt may terminate a corporation’s S...

On September 27, 2010 the President signed the Small Business Jobs and Credit Act of 2010 (the “Act”) into law.  The Act provides for more than $40 billion worth of tax benefits aimed to support economic growth among small businesses. In summary, the Act provides...

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