Ordinarily, if you buy an asset and its value appreciates, you must pay capital gains tax when you sell the asset. If you are in a low income tax bracket, no capital gains tax might be due. For most taxpayers, the federal capital gains tax rate is 15% and for some it...
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Year: 2019
Converting a Delaware Limited Liability Company (LLC) to a Corporation
In Delaware, as elsewhere, the two most common business entities are the limited liability company (LLC) and the corporation. Although there are benefits and drawbacks to both types of business entities, those who seek investors are better off organizing as a...
Adding Sweat Equity Members in LLCs
In the best of all possible worlds, equity in an LLC is acquired by a cash buy-in. But often, one member of the LLC has cash, yet the other does not, and can’t acquire it other than through sweat equity. In another scenario, an LLC wants to grant a valued employee...