Category Archives for Regulations and Law

LLC to C Corporation Conversions – Tax Consequences for Investors

I had my first LLC investment decide to convert to a C Corporation in 2019. Today’s post will cover my personal experience handling that conversion and what the potential tax implications are for investors when a conversion occurs.

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Three Ways the U.S. Gives Tax Relief for Investing in Startups

While startups are very risky, the U.S. provides three key tax benefits for startup investors to make early-stage investments more enticing. Learn all about Section 1202, 1045, and 1244 as well as other key tax considerations for startup investments.

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The Five Tax Questions Every Startup Investor Should Answer

Taxes are generally the last thing on the minds of most startup investors. Find out some of the key tax implications of investing in startups.

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Overview of SEC’s Proposed Updates to Reg CF and Exempt Offering Framework

On March 4, 2020, the SEC proposed major updates to Regulation Crowdfunding and other exempt offering frameworks to increase access to capital while preserving and enhancing important investor protections. This article reviews the proposed changes to Reg CF and the potential impact on both investors and issuers.

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SEC Proposes Updates to the Accredited Investor Definition

The SEC proposed updates that would amend the definition of an accredited investor and expand the number of people and entities that qualify. Learn more about the proposed updates and what the potential impact could be on crowdfunding investors and the industry.

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Securities and Exchange Commission - Photo by Scott S (https://www.flickr.com/photos/glass_window/)

Accredited Investor – Overview and History

The Accredited Investor definition is a cornerstone of Regulation D and an objective way for issuers to identify potential investors for private offerings. Learn all about the history of the term, what it is, and why it came to be.

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What are Direct Public Offerings (DPOs)?

Direct Public Offerings (DPOs) are when an issuing company sells financial securities directly to investors, vs. using a third party or intermediary. We discuss the different types of DPOs and clarify terminology to help investors and startup founders better understand what a DPO is.

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State Tax Credits for Startup Investors and Angels

While there are numerous federal tax credits for startup investors, additional tax benefits may exist at the state level for qualifying angel investors.

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Intrastate Crowdfunding and Blue Sky Laws

What is Intrastate Crowdfunding and what are Blue Sky Laws? We compare them to Regulation Crowdfunding and break down the pros and cons for investors and founders.

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LLC vs C Corporation Investments – Tax Implications of Business Type

A very important but often overlooked aspect of investing in the private markets is how the type of business – LLC vs. C Corporation – can impact taxes. We discuss some of the tax considerations that investors should be aware of when investing in each business entity.

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