Business partners, officers, and directors of a corporation all owe fiduciary duties of loyalty and good faith to the company and must act in the company’s best interests. Self-dealing occurs when a fiduciary puts their own interests above those of the company to...
Should Your Company Raise Capital Under Rule 506(b) or Rule 506(c)?
Under the federal securities laws, a company may not offer securities unless they have been registered with the Securities and Exchange Commission (SEC) or an exemption from registration can be used. Regulation D of the Securities Act of 1933 provides three main...
Forming an LLC in New York
A limited liability company (LLC) is a business structure that offers several advantages, including pass-through taxation and protection from personal liability. While forming an LLC in New York is an easier process than forming a corporation, still several steps must...
What is Dissolution in Business?
Making the decision to close a business can be a difficult one, and the steps that must be taken to do so are often complex. If a business owner determines the time has come to end operations, that business owner must go through the dissolution process. Whether...
Tax Avoidance vs. Evasion — What’s the Difference?
Supreme Court Justice Oliver Wendell Holmes, Jr. is credited with saying, “taxes are the price we pay for civilized society.” No one must pay more in taxes than necessary under the U.S. Tax Code. You can structure your financial affairs to be tax efficient — but you...
Cancellation of Debt: What Do You Mean I Have to Pay Tax on That?
If you had debt that was reduced or canceled not through bankruptcy or insolvency, that reduction may be taxable. Even though there are no actual cash proceeds, cancellation or discharge of debt is counted toward your income. Under Internal Revenue Code Section 61...