by Mike Baker | Jun 1, 2021
You have a brilliant business idea. And you can see yourself as a millionaire. But sadly, you’re frozen by the very first decision you have to make: Do you form the company as an S corp, C corp, or LLC? Today’s your lucky day. I’ll make it easy for you. If you plan on...
by Mike Baker | May 1, 2021
When selling an S corporation, an increasingly common transaction structure is the so-called “F” reorg QSub drop. Its popularity is tied to the fact that it can provide each party in the transaction a desired tax benefit. What tax benefit does a buyer want when...
by Mike Baker | Mar 27, 2020
On March 27, 2020, President Trump signed the third – and most comprehensive – coronavirus relief package into law. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was passed by both the House of Representatives and the Senate with broad...
by Mike Baker | Mar 7, 2020
So, you accidentally granted one or more discount stock options. Now what? As quick background, a discount stock option has an exercise price below the fair market value of the underlying stock on the date of grant.[1] For whatever reason, Congress doesn’t like this...
by Mike Baker | Feb 19, 2020
You have an employee who is leaving. She tells you she doesn’t have the cash to exercise her Company stock option in the first three months post-termination and she realizes if she doesn’t the option will expire. She pleads with you to do something and you are willing...
by Mike Baker | Jan 4, 2020
You can tell the difference between equity and non-equity partners at Kirkland & Ellis by looking to see if they have “P.C.” after their name. It’s true. See here for an example of an equity partner and here for an example of a non-equity partner. Still skeptical?...
