Jun 20, 2024
11:55:16pm
11:55:16pm
I’ll take a stab
1.. yes. Income in a C corp is taxed. At the corp level. Dividends (profits) disbursed to shareholders is taxed also as income on the shareholders personal tax return.
2. Stockpiled cash is stockpiled cash and holding it does not generate tax liabilities beyond the tax on interest earned.
3. A hostile takeover is basically an unsolicited offer to buy the shares in a company from existing shareholders when management does not think it’s in the best interest on the shareholder to sell their shares. Private owners are not likely to sell a business for less than the value of cash in the bank. No none is forced to sell. Selling publicly and being listed on an exchange like the NYSE usually doesn’t make sense with less than a 200MM valuation due to the additional costs of audits and reporting.
4. As a multiple of earnings or EBITDA less debt and working capital or on the value of the assets or comparable companies. If it’s a startup then the value is the cash contribution plus some sweat equity. All the founders have to agree on the value of the sweat equity up front or they wouldn’t put their cash in.
5. Use a round number with a lot of zeroes in it for easy math. Related loosely to the amount of cash raised.
6. Not really. Who cares if it’s a million shares a one dollar each or 100k shares at ten each. Berkshire h shares were never split and got to 60k each at one point
7. Potentially. If it’s negotiated at arms length and in the employment contract.
8. No idea
9. Talk to a good accountant in that area of business.
10. 100% if not abused (fam reunion)
11. See 10
12. If they control how the work is done then lean yes.
13. Is it a business cost? Do the recipients do actual real work for the business (30 hrs plus per week)
14. Up to the business. If public then quarterly. Private companies typically have an annual meeting of record.
15. Whatever you decide
16. Nominee for what?
17. 18 You need an attorney to go over this.
19 Corporate bylaws for a c corp. operating agreement for LLC.
20 most large tax firms have an international tax specialist
21. Do you have business activity inside the borders of another country?
22. C corps are tax inefficient . S corps dont have the liability protection of an LLC. I see most startups in LLCs
23. An entity can own an entity. It’s called a wholly owned subsidiary
Good luck. Don’t quote me. All the disclaimers apply to anything I’ve said.
2. Stockpiled cash is stockpiled cash and holding it does not generate tax liabilities beyond the tax on interest earned.
3. A hostile takeover is basically an unsolicited offer to buy the shares in a company from existing shareholders when management does not think it’s in the best interest on the shareholder to sell their shares. Private owners are not likely to sell a business for less than the value of cash in the bank. No none is forced to sell. Selling publicly and being listed on an exchange like the NYSE usually doesn’t make sense with less than a 200MM valuation due to the additional costs of audits and reporting.
4. As a multiple of earnings or EBITDA less debt and working capital or on the value of the assets or comparable companies. If it’s a startup then the value is the cash contribution plus some sweat equity. All the founders have to agree on the value of the sweat equity up front or they wouldn’t put their cash in.
5. Use a round number with a lot of zeroes in it for easy math. Related loosely to the amount of cash raised.
6. Not really. Who cares if it’s a million shares a one dollar each or 100k shares at ten each. Berkshire h shares were never split and got to 60k each at one point
7. Potentially. If it’s negotiated at arms length and in the employment contract.
8. No idea
9. Talk to a good accountant in that area of business.
10. 100% if not abused (fam reunion)
11. See 10
12. If they control how the work is done then lean yes.
13. Is it a business cost? Do the recipients do actual real work for the business (30 hrs plus per week)
14. Up to the business. If public then quarterly. Private companies typically have an annual meeting of record.
15. Whatever you decide
16. Nominee for what?
17. 18 You need an attorney to go over this.
19 Corporate bylaws for a c corp. operating agreement for LLC.
20 most large tax firms have an international tax specialist
21. Do you have business activity inside the borders of another country?
22. C corps are tax inefficient . S corps dont have the liability protection of an LLC. I see most startups in LLCs
23. An entity can own an entity. It’s called a wholly owned subsidiary
Good luck. Don’t quote me. All the disclaimers apply to anything I’ve said.
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