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27 MarIs Money Raised in Crowdfunding Taxable?

Many startups that run crowdfunding campaigns fail to consider that the money that they are raising may be taxable. Money generated from crowdfunding campaigns is usually classified in one of two ways: income, or a non-taxable gift. Income, of course, is taxable. Generally speaking, if a user is provided with a reward whose market value […]

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24 MarEmployee or Contractor? Questions an Employer Should Ask Themselves Before Classifying

There have been numerous articles covering the distinction between classifying workers as employee or independent contractors. And although many companies prefer to classify workers as contractors due to the lower costs, these many articles have also covered the risks of improperly classifying workers, including having to shell out for back pay, interest, and/or tax penalties. […]

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17 MarWhat Does S-Corp Taxation Exactly Entail?

If you’re an entrepreneur trying to structure your startup, you may be reading about LLCs, C-Corps, and S-Corps, and trying to figure out which one is best for you. If you’re looking to start a small, personal business, you may have heard or have been told that S-Corp would be the best choice for you, […]

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10 MarAre Non-Competes Going the Way of the Dodo?

Even as non-compete agreements become more and more common, the tide of legislative opinion may be turning against non-competes. The Michigan legislature recently introduced a bill into committee that would render many non-compete agreements void — exceptions would exist for non-competes in conjunction with the sale of a business or the goodwill of a business. […]

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06 MarShould I Crowdfund or Seek Seed/Angel Investment?

Startups that are looking to raise initial capital usually decide between crowdfunding their product/business and seeking seed/angel investment. Both have their benefits and drawbacks, and both have different legal requirements. For the purposes of this article, the discussion about crowdfunding will refer to the Kickstarter/Indiegogo rewards-based crowdfunding. One of the primary benefits of crowdfunding, as […]

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03 MarIP Considerations When Seeking Investment or Acquisition

One issue that often kills investment or acquisition deals for startups is intellectual property. During due diligence, entities seeking to invest in or acquire a startup review whether the startup owns or has valid licenses for all the intellectual property that it uses. This involves reviewing registrations and related assignment or licensing agreements. In final […]

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27 FebSplitting Equity Among Co-Founders

One of the first big questions that co-founders have with each other is how to split the founders’ equity. Many teams simply decide to quickly move past the questions by deciding to split the equity evenly. However, myself and most commentators believe that this is usually the wrong decision. Splitting the equity evenly means that […]

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24 FebThe Costs of Starting a Business

If you’re thinking about starting your own business, you must be mindful of the costs of starting up a business. The first category of costs are the incorporation and licensing costs. Most startups are formed as either corporations or LLCs, both of which carry filing fees in order to register with the state. startups who […]

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17 FebDo I Have to Pay Workers When We’re Closed for Weather?

Startups and small businesses in the Greater Boston area have been repeatedly faced this winter with the prospect of closing down and/or asking their employees not to come into work. However, founders and managers may not be sure of whether they have to pay their employees when the company closes for winter storms. Employees who […]

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13 FebWhich State Should I Incorporate In?

The question of which state an entrepreneur should incorporate or organize his or her business in is an important, if sometimes overlooked, question. Some startup founders simply choose the state in which they live; others choose Delaware without considering why Delaware is a preferable choice and whether the benefits of Delaware are even applicable to […]

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