Highlights from MBBP Life Sciences Series Panel 2 – Laying the Foundation for Growth: Entity & Equity 07/05/2016Posted by Morse Barnes-Brown Pendleton in Attorney News, Client News, Corporate, Events, Life Sciences, Venture Capital & Private Equity.
Tags: business, enquity, entity, entity selection, exit planning, Life Sciences, moderator, panel, panelist, startup, startups, stock options
On Wednesday June 22nd, the offices of Morse, Barnes-Brown & Pendleton were filled with a crowd of people for a life sciences panel discussion on “Laying the Foundation for Growth: Entity & Equity.” Esteemed panelists included Marc Cote, COO of Accellient; Jeffrey Solomon, Managing Shareholder of Katz Nannis + Solomon; and MBBP’s own John Hession as moderator.
The panel explained to the audience the importance of understanding the different entity options when starting a new business, and provided important tips on how to pick the right fit for the business. John Hession stated that when choosing an entity it is crucial to consider where you plan on heading with the business and the long-term goals, how long before you generate money, investments, exit strategy, and how long before you will be investing money of your own into the business.
Jeffrey Solomon explained that most investors will insist that your business is a Delaware C-Corp. He detailed that although LLCs can be beneficial because of their pass through tax benefits, they also have more complexities with tax filings. However, since C-Corps are able to receive 1202 tax treatment and exclude gains, C-Corps are typically preferred. The panel also discussed equity strategic considerations, including restricted stock options, with Marc Cote describing the importance of filing an 83(b) within 30 days of executing the agreement.
These were merely a few of the insightful topics discussed at the 2nd Life Sciences Series Panel. The next panel in September will be equally educational, so keep an eye out for further details, including registration information, on our site.