Ryan Perry Discusses Profits Interests and their Potential Business Benefits and Caveats in New Article 02/27/2017Posted by Morse, Barnes-Brown Pendleton in Attorney News, Corporate, Taxation.
Tags: corporate attorney, corporate law, corporation, entity, ISO, ISOs, llc, LLCs, profits interests, stock options, tax attorney, tax law
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One of the first and most important tax-driven decisions a founder must make is the type of entity in which to house his or her venture. Though much ink has been spilled over the pros and cons of choosing a corporation versus a limited liability company, or LLC, one thing is certain: most folks understand corporations better than LLCs. And who could blame them? LLCs can be complicated entities – so flexible that they often seem downright weird. As a result, even when a founder decides that an LLC is the right fit, it is often structured to look as much like a corporation as possible. We denote membership interest as stock-like units, we view boards of managers simply as directors by another name, and yes, we sometimes even issue options to employees. Equity compensation strategies in the world of the LLC, however, can be much thornier propositions than they are for the humble corporation.
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
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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.
MBBP’s Most Popular Articles of 2010 01/19/2011Posted by Morse, Barnes-Brown Pendleton in Employment, Life Sciences, MBBP news.
Tags: noncompetition agreement, start-ups, stock options
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As we enter 2011, MBBP would like to share a look back on our 10 most popular articles of 2010:
- Stock Options and Restricted Stock
- New Treble Damages Requirement Makes Compliance with Wage/Hour Laws Even More Critical
- The Massachusetts Independent Contractor Law
- A Rose by Any Other Name: Pros and Cons of Pseudonyms
- Enforcing Noncompetition Agreements
- Protecting the Legal Interests of Founders in a Startup Emerging Technology Company
- Setting Values and Royalty Rates for Medical and Life Science Businesses
- Stock Option Pricing by Private Companies: The New Valuation Environment Under 409A
- Double Trigger Acceleration: Neat in Theory, Messy in Practice
- The Low Down on Start-Ups
For more information on what MBBP has to offer, please visit our website.