Many online retailers do not collect state or local sales tax on customer purchases—a significant advantage that may be in jeopardy. Large online retailers, such as Amazon.com, have defended their decision not to collect sales tax by citing a 1992 U.S. Supreme Court decision. In that decision, the Supreme Court […]
I’ve updated our compilation of sources of capital available to startup companies in Ohio. The list includes angel groups, venture capital funds, innovation funds and some incubators offering financing alternatives. Our goal is to have this resource be as complete and accurate as possible, so if you have any recommended […]
Startup companies often seek to retain their founders and critical employees through the use of equity compensation. To ensure that these top people are committed to the company for the long-term, it is often a good idea to issue stock subject to buy-back provisions (founder’s restricted stock). However, shareholders must […]
On January 31, 2011, during President Obama’s State of the Union address, he said, “Entrepreneurs embody the promise of America: the idea that if you have a good idea and are willing to work hard and see it through, you can succeed in this country. And in fulfilling this promise, […]
The United States Patent and Trademark office has extended a pilot program to allow applications advanced out of turn for applications pertaining to green technologies. Originally this pilot program was scheduled to end on December 8, 2009, but it has recently been extended through December 31, 2011. For more information on this program, click […]
Venture Capitalists (“VCs”), Angel investors (“Angels”) (i.e., accredited investors), and Business Development Companies (“BDCs”) fulfill generally the same role: to help small and medium-sized companies obtain financing when more traditional means of funding (e.g., bank financing) are unavailable. Bank financing, though, almost always requires accounts receivable, inventory, buildings, equipment or […]
On December 17, 2010, President Obama signed the 2010 Tax Relief Act into law, and among other things, extended the 100-percent tax exclusion from capital gains of qualified small business stock (QSBS). As background, on September 27, 2010, President Obama signed H.R. 5297 Small Business Jobs Act of 2010 (P.L. […]
It can be a huge money-saver for a small business to get into the practice of working with independent contractors. Using independent contractors will lower a companies tax bill, require less withholdings, and in some states, reduces the obligations under workers’ compensation requirements. As a result, many small businesses advantageously hire independent […]
Many companies, especially companies trying to save money, file provisional patent applications to protect inventions. Provisional patent applications differ from regular patents applications because they do not mature into an actual patent unless a patent application is filed within one year. Benefits: First, the U.S. Patent and Trademark Office (PTO) […]
In the past couple of months, we’ve had several inquiries about whether to incorporate a new business in Nevada rather than Delaware or the home state of the business. In the last decade, both the state of Nevada and some internet “incorporators” have been actively promoting Nevada as the “Delaware […]