Create a Stock Option Plan If a company wants to incentivize employees or outside contractors to help the company grow, it should create a stock option plan (also known as an equity incentive plan). A stock option plan allows a company to give its employees or contractors stock options in the...
How to Sell a BusinessOn a long enough timescale, almost every entrepreneur considers selling their business. The reasons for wanting to liquidate your stake in your company vary, and include: desiring to focus on another venture, receiving interest from a potential buyer, and preparing for retirement. Whatever the reason, it...
What Is A Private Placement?Working with investors to generate capital is key to the success of many companies and businesses. When raising capital for your business, you may consider offering private placements to potential investors, but first you must understand what private placements are and how they work. A private placement is...
Employer Identification Number ("EIN")Every corporation, partnership or other business with employees must apply for, and obtain, an Employer Identification Number ("EIN") from the IRS. An EIN serves as the Federal Tax Identification Number for the business, and it must be used by the business when opening any accounts, and in connection...
Oregon Combined Employer's Registration Every company in the State of Oregon with employees must file a Combined Employer's Registration. The registration is "combined" in the sense that the registration simultaneously takes care of registering the company with both the Oregon Department of Revenue and the Oregon Employment Department. The Oregon Department of Revenue is responsible...
WHAT IS AN S CORPORATION?S corporations (also referred to as "S Corps") are corporations or limited liability companies ("LLCs") whose founders have filed Form 2553 with the IRS, electing to have the company taxed as a "small business corporation" under the federal tax code. There is no such thing as incorporating...
Five Common LLC Legal MistakesIt's very easy these days to find a company online to help you quickly "start a company," and the most popular type of company is the limited liability company ("LLC"). Unfortunately, most people who use the services of an on-line filing company fall prey to some of...
City of Portland Tax For entrepreneurs in the Portland, Oregon area who are looking to start up a new business, one consideration to keep in mind is whether to locate the business in the City of Portland, or in Multnomah County, each of which charge relatively hefty business taxes. Being subject to...
S Corporation RequirementsS corporations (also referred to as "S corps") are very popular amongst small business owners because they offer those businesses pass-through taxation, and also give the owners of those businesses potential tax benefits through the taking of shareholder distributions (also referred to as "draws" or "dividends") at reduced...
A business can be capitalized with either debt or equity, which can include raising capital. When starting a business, or when operating the business, owners need to determine how to balance these two options. There are advantages and disadvantages as to both, and this article will discuss those in detail...