In addition to cash payments, many of those who work for a technology start-up company receive some form of equity-linked compensation that often has the earnings potential much larger than the actual compensation received. RESTRICTED STOCK. It is the stock
Starting January 1st, 2022, R&E expenses are not deductible in the year incurred. They need to be capitalized and amortized over 5 or 15 years depending on whether research is done inside or outside the U.S. R&E expenditures are research
There are two main ways to compensate service providers in the U.S.: as employees and as independent contractors. The employees receive wages subject to payroll taxes. Employer’s expense on top of the wages is roughly 8%. Employee’s share of payroll
If a U.S. taxpayer owns a foreign entity, the income of that foreign entity may be subject to immediate U.S. taxation. Corporations are no exception to the rule. There are three schemes for reporting foreign subs that are more than
Corporations pay tax on net taxable income. Shareholders pay an additional tax on the distributions (dividends). A corporation may calculate its net income and pay tax on a calendar or fiscal year. If a fiscal year is elected, it can
The lifeline of every early-stage enterprise is the financial resources that will allow it to develop its intellectual property, increase its sales, and grow the business. Financing may come as common or preferred stock equity, SAFE (Simple Agreement for Future
Non-resident shareholders have a potential problem. If they die while directly owning the shares of a U.S. corporation, the value of those shares is subject to estate tax in the U.S. There is a meager $60,000 exemption, then the tax
In a typical setup of a business organization, there is usually a common understanding between investors and founders. The primary obstacle they encounter relates to the taxation of the formation procedure itself. This happens before any income is generated, and
This guide covers key issues of U.S. taxation of an international high-tech start-up corporation, its founders, and investors. It focuses on a specific perspective of an international start-up founder and their financial management team who are running or planning to