Demystifying 83(b) Elections

By Libbie R. Howley and David Wittmann on October 23, 2014

If your employer grants you stock in connection with your services, under Section 83 of the Internal Revenue Code (the “IRC”), you will be taxed on the difference between the fair market value (“FMV”) of the stock and the amount you paid for the stock. In most early-stage company situations, an employer will grant stock to an employee that the employee loses if he or she leaves the company before a certain date (usually by repurchase by the Company and commonly referred to as “forfeiture”).

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Pre-Money and Post-Money Valuations: What's the Difference?

By David Wittmann on October 1, 2014

After working with a number of early stage companies trying to raise capital, it has become evident that the concepts of pre-money valuation and post-money valuation are often a source of confusion.

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'LightLab' Case: Problematic for Startups Seeking to Enforce Trade Secret Protections

By David Glod on September 18, 2014

A recent decision of the Massachusetts Supreme Judicial Court counsels that early-stage companies need to be especially protective of their trade secrets.

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Convertible Promissory Notes - The Basics You Should Know

By David Wittmann on August 12, 2014

If you’re a player in the early-stage company space, you’ve likely heard of convertible promissory notes (CPNs).

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Finally Some Limited Relief for "Finder" Business Brokers

By Libbie R. Howley on June 13, 2014

A longstanding grey area of the law has been the broker-dealer registration requirements for finders – those persons or businesses effecting or facilitating transactions to raise capital through the sale of securities.

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