Regulatory & Tax

Source: Alan Patricof, Managing Director, Greycroft Partners In December 2015, Congress passed the PATH Act (Protecting Americans from Tax Hikes), a sweeping $1 trillion bill which, as part of an 887-page omnibus, would prove challenging for even the most astute of human beings to absorb, let alone many of those in Washington. Nevertheless, page 813, […]

Perhaps the harshest penalty in the tax law is sometimes called the “100 percent penalty.” If you are a “responsible” person in a company and you fail to remit federal taxes withheld from employees’ paychecks to the federal government, you can be held personally liable for 100 percent of the unpaid amount. The tax law

Source: BizActions New guidance issued by the U.S. Department of Labor provides clarification on the definition of an independent contractor (Administrator’s Interpretation No. 2015-01). This guidance may be helpful to employers who are contemplating hiring extra workers but are concerned about all of the obligations associated with hiring employees, including health insurance, workers’ compensation, unemployment

Source: Billy Fink, Editor, Axial Forum IPOs are in vogue right now. In the last month alone there was the best IPO week since 2006 and PE IPOs reached their highest ever level. But, not all companies are getting access to the IPO party. These flotations have largely been reserved for much larger firms, with significant

Source: Jim Verdonik, Ward and Smith PA and Knox Proctor (also Ward and Smith) The Jumpstart our Business Startups (“JOBS”) Act was a bipartisan effort to create jobs by making it easier for start-up companies to deal with securities laws when raising capital. It was signed by the President on April 5, 2012. Most of

Source: Jim Verdonik Jim Verdonik is an attorney with Ward and Smith, P.A. in Raleigh and operator of www.eLearnSuccess.com and www.YouTube.com/eLearnSuccess. He can be reached at jfv@wardandsmith.com More businesses are raising capital through private placements, because the venture capital industry has shrunk. “Public Private Placements” with or without advertising (soon to be augmented by crowd

Source:  Jim Verdonik I’m an attorney with Ward and Smith PA. I also write a column about business and law for American Business Journals, have authored multiple books and teach an eLearning course for entrepreneurs. You can reach me at JFV@WardandSmith.com or JimV@eLearnSuccess.com. Or you can check out my eLearning course at http://www.elearnsuccess.com/start.aspx?menuid=3075or http://www.youtube.com/user/eLearnSuccessor or

Source: JIM VERDONIK, Ward and Smith, P.A. Let’s analyze the SEC’s recent Rule 506 (c) changes through the eyes of dogs. The SEC threw business trying to raise capital a bone by letting them advertise in Rule 506 (c) private placements, but you have to learn new tricks about how you verify that a purchaser

Source: Melanie Waddell, ThinkAdvisor Washington Bureau Chief Investment Advisor Magazine The rules would ‘permit crowdfunding to begin,’ said SEC Chairwoman Mary Jo White The Securities and Exchange Commission voted unanimously October 23rd to publish for public comment its congressionally mandated rules under Title III of the JOBS Act that would permit startups and small businesses

Source: Angel Capital Association (www.angelcapitalassociation.org) In July 2013, the Securities and Exchange Commission approved two rules and one proposed rule that will change how entrepreneurs raise angel capital and may make investment more difficult for angels and startups alike. We want to make sure ACA members have the information you need as soon as possible.