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What Kind Of Company Should You Create?

YoungUpstarts

Additionally, it will be important to consider whether you plan on attracting investment capital through the distribution of stock, because only certain types of businesses can issue shares of ownership. S-Corporation. The LLC structure also protects personal assets from seizure in the event of a lawsuit in most cases.

LLC 182
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The Different Types Of Shares And Ownership Of A Limited Company

YoungUpstarts

If you have decided to incorporate your company as opposed to acting as a sole trader, you will need to understand the types and class of shares that you could issue. When first forming your company, there is not a set type of share that you have to use. Ordinary shares are those that are typically issued by small companies.

Dividend 113
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Mathematical vs. Economic Dilution of Startup Equity: Thinner Slices of an Extra-Large Pizza

Gust

Entrepreneurs frequently think of equity primarily in terms of percentages such as 50/50 or 40/40/20 — not necessarily a bad idea at inception, or even throughout the lifecycle of a traditional business, such as real estate, where cash distributions, capital contributions, and allocations of profit or loss for tax purposes can be made accordingly.

Dilution 162
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Crucial Things You Need To Know About Your First External Audit For Series B

YoungUpstarts

Before your financial statements can be filed with the SEC or distributed outside of your business, an external auditor must ensure your records adhere to GAAP. These are: Revenue Recognition issues. Share-based Compensation. Accounting for Income Taxes. Accounting for Income Tax. 409A Valuations.

CPA 165