by Mike Baker | May 1, 2023
What do you do, when you receive a 409A valuation for your company that is lower than the exercise price of previously granted stock options? A few years ago I read an article titled, We Spend Too Much Time Celebrating “Start Ups” and Not Enough Time...
by Mike Baker | Apr 4, 2023
So, you’d like to convert your limited liability company, which is taxed as a partnership, into a C corporation? This is generally not hard to do from a pure mechanics perspective. If your LLC is organized in Delaware, or certain other states, the conversion can be...
by Mike Baker | Feb 4, 2023
Flashback to 2013. You were so excited when you started your company. You handed out stock options right away to your new employees and shared your expectation that the company would sell in a few years for a big pile of cash. Now it’s 2023 however, and...
by Mike Baker | Jan 15, 2023
Every year I get a new hard copy set of income tax regulations. These come in four phone book-size volumes. I probably look forward to getting these more than I should—they come at the end of December, and for a tax guy like me it always feels like a belated Christmas...
by Mike Baker | Nov 3, 2022
The following method for providing founders liquidity has been very popular during the last three years: An investor buys common stock from founders during a preferred financing at the preferred price. Those same common shares are then magically exchanged by the...
by Mike Baker | Oct 19, 2022
The tax rates and deduction amounts for the 2023 calendar year are listed below. Federal ordinary income tax rates Single taxpayers If taxable income is between: The tax is: 0 – 11,000 10% of taxable income 11,000 –...
