Questions tagged [private-company]
A private company is a company held under private ownership with shares that are not traded publicly on exchanges.
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1answer
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Can US private companies issue publicly-traded bonds?
In the United States, can private companies issue publicly-traded bonds?
If so, are these bonds usually available to retail investors, or are they restricted to accredited investors?
Where do these ...
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0answers
34 views
What are Fringe benefit employee contributions?
While preparing my company tax return, i came across this curious phrase in the Australian Company income tax return guide (link here)
Fringe benefit employee contributions
Employee contributions ...
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0answers
41 views
Taxation on LLC capital gains
If I formed an LLC with private investors and had short-term capital gains then,
Are the capital gains taxed on the amount excluding the dividends/profits paid to investors?
Will the investors have ...
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2answers
58 views
How does private equity work in a public mutual fund?
For example, I'm invested in FGCKX, which contains SpaceX, Reddit, and Juul equity, and some other companies not publically-traded. How is the day-to-day price determined for these?
For a follow-up ...
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2answers
77 views
Private company investment
When someone or a company invests in a startup, does the owner take some money from the investment ?
For e.g if Amazon invested $2billion in my company can I take some from it for myself ?
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2answers
50 views
Tax on dividends from a limited company when a higher rate taxpayer
I am a higher rate taxpayer and want to do some work on the side. I've already secured the work but I am now wondering if I should use a personal company or not. What I do not understand is the tax on ...
2
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1answer
77 views
How to buy private company stock using a registered account (e.g. LIRA, RRSP)?
I would like to invest is a private company using money from my LIRA (locked in retirement account).
I know this is allowed, similar to holding private mortgages under these accounts, but how do I ...
0
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1answer
66 views
Why does private equity have a higher fee structure than public markets?
I'm trying to understand why private equity tends to have higher fee structures than public markets. My hunch is that it takes more skill/risk to manage illiquid assets. I'd also imagine more due ...
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8answers
840 views
Why is it ever a good idea to found a company?
I have a side project with a few friends that's gradually getting more serious. We're nearly at the stage where we'll be taking some early clients, which is really exciting after about a year of ...
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1answer
80 views
How to depreciate in terms of taxes?
So, Let's say I have a very small business and I make about 10,000 USD in sales. Let's assume there are 0 expenses. So, my profit is about 10,000 USD for that year.
Assume the tax rate on the ...
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5answers
14k views
How can I sell my shares in a privately-owned company I used to be employed by?
Basically, I was a software developer at a company and I was issued some stock options early on, before the company grew significantly. The company then hired a CEO who pledged to take the company ...
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1answer
106 views
Weighing unvested RSU's against stock options in a job offer
I currently have unvested restricted stock units with my employer. It's a very stable publicly-traded company.
I received a job offer from a private company hoping to IPO in the next few years and ...
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2answers
195 views
Approximate cost of making a shell company
Hi. I was thinking about making a company to hide a plane I am thinking of buying.
A helpful person suggested to make a shell company since planes can be registered to companies and FAA site doesn't ...
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1answer
110 views
What is a reasonable discount on the share price for a 25% holding?
One party controls 75% of the shares and voting rights of a small private company.
The other party controls 25%.
The larger party wants to buy out the smaller party to own 100%.
The shares were ...
4
votes
1answer
169 views
Purchase Stock but cannot pay AMT
I was released by my company and I had to purchase my ISO's within 60 days of leaving the company or lose them. The issue is to purchase them would mean around a $1.2m AMT & State Tax Bill next ...
38
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1answer
8k views
“Marked down as someone wanting to sell shares.” What does that mean?
A few years ago I and a few friends created a company based on the web. During the raising funds period, we got a plan for $500,000 for 20% and we got investors. The last news about investors that I ...
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1answer
112 views
How/when to take loss in private company that re-orgs post-Chapter 11 and converts to new/fewer shares?
My wife's company is private. We bought 60 shares x $1k/share 5+ years ago.
This past year
they (OldCo) went Chapter 11 bankrupt
re-emerged from bankruptcy
as a new LLC (NewLlc)
"There were assets ...
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4answers
591 views
Should I contribute to my employer's Employee Stock Program (ESPP), and if so how much and only during certain times of the year?
Although it is company-specific, what are your experiences when contributing to ESPP (Employee Stock Program)?
More specifically, do you recommend contributing to ESPP in max? Or maybe it is only ...
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1answer
167 views
What are the risks with investing in private real estate funds via Fundrise?
I recently discovered this real estate investment company, Fundrise, and after doing some research, I’m interested in investing with them. But I’m on the fence about the trustworthiness of their ...
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3answers
345 views
$10,000 was accidentally transferred to me instead of my company
As a result of a business competition we won for school, $10,000USD was transferred from my University's Accounts Payable department, to me. It should have been transferred to my business, a C-...
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3answers
2k views
Understanding my company's liabilities
I am seeking to close a UK business I own but I am worried about being hit with a huge tax bill.
I have been provided a balance sheet which states the following:
TOTAL ASSETS LESS CURRENT ...
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1answer
386 views
Closing company, what do to with last amount of funds?
So the business is about to be shut down and there is a little bit of funds left over in the business bank account which I do not want/need.
According to https://www.gov.uk/strike-off-your-company-...
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4answers
2k views
Do pension pots get interest? [closed]
Pension pot is the money, the employee and sometimes the employer and the government pay that gets accumulated into pension fund.
But my question is, that this pension fund is basically a bank ...
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2answers
490 views
how to find out if a company has stock/shares to invest in?
Scenario: Lets say I'm walking down main street and a company or two catch my eye as possible investment opportunities.
How do I go about finding if they have stock/shares to invest in? Some may ...
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1answer
225 views
Regulations regarding investing in a private business
There have been a couple of years where, after maxing out contributions to retirement accounts, I've had some disposable money left over that I'd like to invest in something other than publicly traded ...
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2answers
217 views
Funding a company launch
I live in Canada and I'm planning to start a company. My question is not about the Business Plan, the initial funds needed or how to hit the market and make money.
I currently have a relatively good ...
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3answers
528 views
Can non-accredited investor remain as a shareholder in private company?
In the US one has to be accredited investor to buy stock in a private company.
However, does one still need to be accredited investor in case a public company goes private (i.e. get delisted from ...
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2answers
130 views
Ownership of shares in a small company
I've been wondering this for a while now:
If a small company has 2 shares and person A owns 1 of 2 and person B owns the other 1, what happens to their shares if person C wishes to buy shares.
Is it ...
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4answers
278 views
Is money invested in a company owned by the company?
If someone sells 20% of their company for a $500,000 investment, I assume that means that the investor has a right to 20% of the profits.
Would this $500,000 then be owned by the company or by the ...
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1answer
56 views
How to consider capital assets in DCF analysis?
I'm calculating an enterprise value with the DCF analysis.
In DCF I consider revenues - costs, and I also discount reinvestments. These reinvestments are to get more capital. How can I take into ...
8
votes
2answers
733 views
How should I inject working capital into my company?
Me and two partners started a company earlier this year. Each of us owns 33.33% of the shares. Right now we are generating enough income to cover our monthly expenses, but we have already signed new ...
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3answers
109 views
How is a grant of stock treated from an income tax perspective?
If I go to work for a private company and they give me stock in the company how is that treated from an income perspective?
Is the value of the stock just its par value (which can be nominal in a ...
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1answer
116 views
Do I need to pay myself as a director if I also have a full-time job?
I am a director (one of two directors) of a private Ltd. company that carries out web development work. I also have a full-time job during the week but do the web development in the evenings and ...
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2answers
86 views
What if company total share value are more and assets are less
Suppose If any company have $10m total valueation and issue the shares than when company have total $12m value but shares are selling at more than that value does it affect anything or is it illegal ...
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2answers
7k views
Ram Solutions Group, genuine or scammer?
I have received an email from RAM SOLUTIONS GROUP offering to buy my shares at a higher price than I paid.
How do I check this company is genuine?
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2answers
166 views
How should I calculate my shares?
Here's context for my question : note that this is a hypothetical
I live in Belgium, Europe (if that is any relevant).
I own 50% of the company I work in (as a manager).
I've been working here 3 ...
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2answers
163 views
Find buyer for private stock?
I've got options to exercise "in the money" by March. However, I would like to sell part of the stock I will buy. The company is not publicly traded. In the agreement I've got the right to sell to ...
4
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1answer
104 views
As a shareholder in a private company that was acquired, what's the transaction date for my capital gains?
I'm a common shareholder in a US private company acquired in Nov 2017 by a US public company. I'm planning to wait until Jan 2018 to exchange my shares for cash+stock in the acquirer. (The M&A ...
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1answer
117 views
Is there any advantage to owning equity in a company compared to a royalty agreement?
I'm involved with an LLC company that is looking give me a financial-interest in their company to keep me around and ensure my loyalty.
Ordinarily they would simply grant me de-jure equity so I ...
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2answers
736 views
How can one go short in Uber?
I believe Uber is massively overvalued and it will face down rounds in the near future. Assuming I can use all financial instruments, how could I short Uber?
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1answer
48 views
Obtaining Private Prospectuses
I am interested in obtaining business model information about private companies. Specifically, I would like to know about things like, areas of growth, short falls, challenges and guidance.
How can ...
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1answer
95 views
Does setting up a company for your own improves credibility?
I have been working as a freelancer for quite a while now. Today, when I am trying to get a car loan, the agency asked me:
Are you currently employed and have regular salary? (No)
Do you have a ...
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1answer
58 views
P/E multiples for privately held companies?
Is there any rule of thumb on the valuation of privately held (tech) companies? The long held "average" I have always seen for publicly traded companies is a P/E of 15 (with tech having historically ...
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0answers
87 views
Would it be tax efficient to create a company to invest though personally
A question, say I have 100k in savings and I pay higher rate tax.
In peer to peer saving I could get 8% and there get interest for 8k. And be liable for 3000 tax. So get 5k out.
End with 100k ...
6
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1answer
704 views
Can a Croatian citizen start a company in Ireland, to reduce income taxes?
I'm a software developer freelancer with Croatian citizenship, and I need to start a company in order to pay income tax.
It's my understanding that my home country will incur 20-40% tax based on my ...
4
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2answers
498 views
Is it possible to make money off of a private company?
I have been made aware of a UK company that I think will be extremely profitable in the next year or two. It is currently privately held and they compete for market share with Intel and NVidia.
Is ...
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1answer
152 views
If I have equity in a company, can I receive passive income from it?
I'm about to receive equity in a company. Let's say I get 10% ownership. Does that mean that if the company makes $100 in profit every month, they have to give me $10?
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1answer
100 views
US Company paying for services provided by a foreign company
I (Company) have been paying a foreign company for their work on few of our software products. I expected that it is a expense from our end, The payments over the times roughly adds up to 150K and I ...
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1answer
104 views
Tax implications of share transfer to family member between UK and Australia
What are the tax implications of an Australian residing in Australia working as a director on a board of a small private UK company transferring shares to a family member in Australia.
The shares ...
