Legal Services for Startups & Savvy Businesses in Colorado

October, 2013

When Does an S Corp Make Sense?

An S corporation is a business entity that combines many of the advantages of an LLC with the advantages of a corporation. Practically, the biggest hurdle for someone looking to start a corporation is the problem of double taxation. That is, paying taxes for the activities of the corporation and also for profits that are […]

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Revenue-Based Financing

Traditionally, if you want to raise money, you do it in one of two ways: through debt or equity financing. But angel investors who want to lend a new business money at a reasonable interest rate are rare (for good reason), and those who want to do it for a piece of the pie typically […]

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Why Partnerships and Sole Proprietorships Rarely Makes Sense Today

According to the IRS, there are five types of business entities: Sole Proprietorships, Partnerships, Corporations, S Corporations, and Limited Liability Companies. Many state statutes allow for additional entities, such as Limited Liability Partnerships and L3Cs (You can register in Colorado as the former, not the latter). For the majority of entrepreneurs, the only real choices […]

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The Missing Piece

My favorite Shel Silverstein book is called The Missing Piece. It’s about a crudely drawn, circle-like creature that appears to have a wedge cut out of it. The creature thinks that the wedge is its missing piece, and so it goes around looking for its missing piece. And here’s the song he sings to himself […]

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Random State Incorporation is a Bad Idea

When I think of businesses that incorporate in any state other than their home state or Delaware, the expression that comes to mind is “too clever by half.” Unless there is a law prohibiting your business from operating in your home state or Delaware (for example, Amazon refuses to allow companies incorporated in certain states […]

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