Delaware Business Taxes: Why so many startups choose to incorporate in Delaware
Delaware is often described as a tax-friendly destination for startups. But that explanation misses the bigger reason thousands of businesses choose the state as their legal home. Delaware business taxes create ongoing costs, while the state’s corporate-law framework, specialized judiciary and familiarity among investors provide a different kind of value. For founders, the distinction matters. […]
QSBS for Investors: How Section 1202 Can Increase the After-Tax Value of Startup Equity
A startup investment can produce the same headline gain for two investors but leave them with very different amounts of wealth after taxes. That is why QSBS for investors deserves attention before an investment is made, not only when a company is preparing for an exit. Section 1202 of the U.S. tax code can allow […]
How Founders Can Protect Their Interests Before Taking Outside Investment
An outside investment can solve an immediate capital problem while creating obligations that remain with a company for years. The headline valuation may look attractive, but the more consequential questions often sit deeper in the financing documents: how much ownership will founders retain, who will control the board, which decisions require investor approval, and how […]
What Entrepreneurs Should Know Before Bringing in an Investor
Moving from founder-funded operations or retained earnings to outside equity capital can change much more than a company’s bank balance. Bringing in an investor can accelerate expansion, provide strategic expertise and strengthen access to capital, but it can also introduce a new stakeholder whose rights may affect ownership, governance and major business decisions. For entrepreneurs, […]
