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...

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 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....

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,...