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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How is "Company Share Option Plans" (CSOP) share price calculated when the company hasn't gone public?
I know a company which provides a CSOP scheme. I have been reading about what this is and I have found the following definition:
The CSOP is a tax qualified discretionary option plan under which a ...
2
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2answers
89 views
Is the donation of billable or paid time of a contractor or employee tax-deductible?
In California, USA, for federal and state taxes, are services performed by a paid employee or contractor (who receives compensation for that time from the company as regular/overtime wages/salary or ...
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9answers
18k views
Am I a billionaire if a friend gives me $1000 for 0.0001% of my "company"?
If my friend gives me a thousand dollars for 0.0001% of my "company", am I technically a Billionaire now?
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2answers
65 views
Do all US companies have to follow GAAP reporting standards for profits and losses?
Do all US companies have to follow GAAP reporting standards for profits and losses when reporting to the IRS and investors?
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1answer
98 views
How is it possible for the shares of a privatized company to still be traded on the US OTC stock market?
At one point, Noble Group was among the largest commodity trading firms in the world. During 2015-2019, the company was accused of accounting fraud, reported huge losses, and was facing insolvency and ...
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3answers
282 views
To what extent are companies' owners not responsible to pay back money that they waste?
I've always been confused by this. Apparently, as I understand it, you can register a company for a small sum of money in Western countries, for example the USA or Sweden, which then become its own &...
19
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1answer
6k views
Why is it reported as news that a company has "raised money"?
For example, it's been reported that upGrad raised 120 million from Temasek. What does this really mean? Why would a education company want to raise money from another investment company? What is the ...
2
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2answers
122 views
How can I research some paper shares I found?
I recently found old paper shares, but I couldn't find any information online about the companies.
Where to find data, and how?
Companies:
Tally-Ho Ventures (TLYH), 7500 shares, 2006 May
COA ...
2
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2answers
102 views
Setting up a Limited company online
I am going to set up a Limited Company for myself, as a sole owner. An accountant quoted me a good amount of money to do it. I have seen a number of online companies who say they help you do it for a ...
2
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0answers
57 views
Uk Tax year and limited companies
I want to open a uk private limited company but wondered if there are any advantages to wait a month so it will be registered in the new tax year.
I know the financials have to be submitted 12 after ...
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4answers
114 views
Calculating a company's PE value
My friend has a startup comapny. The company licenses a software for public participation (example: a municipality wants to conduct a survey/discussion between it's citizens regarding changes they ...
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2answers
162 views
Can I purchase shares of a privately held company as a non-accredited, non-US citizen?
I have a relationship with an individual in the US who owns a company that hopes to go public one day. I believe in his venture and would like to take part as an investor. However, I am not a US ...
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0answers
24 views
how to transfer ownership of private illiquid shares and what is cost basis?
I own a few shares of a private firm. The shares are registered at Carta, but trading is not allowed.
How can I transfer the ownership to my son so that the cost basis would be the price I bought them ...
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1answer
45 views
Which type of organization should I choose to register in Germany to minify taxes for a non-profit software products
I'm (being a resident of Germany) going to introduce a software foundation - keep in mind though that I'm using term "software foundation" in a non-legal sense; and actually the goal of this ...
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7answers
4k views
Why would a company prevent their employees from selling their pre-IPO equity?
I have heard and read that some non-publicly traded companies prevent their employees from selling their pre-IPO equity. Why would they have such a policy?
For example, from How to Sell Private ...
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2answers
108 views
What is the name for a company formed only to make an investment?
What do you call it when someone gets X number of people who all want to invest in Y company; so u create a corp where equity is spread among them, and this corp invests in X company?
Sounds like an ...
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2answers
68 views
Does companyA with majority shares to companyB always/often have the decision?
I have read that companyA now have 60% shares of companyB. Does it mean that companyA have the business decisions for CompanyB? or this still depends on the agreement or board seat?
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1answer
86 views
Self Assessment from Abroad due to Private Limited Company Unpaid Directorship
I left the UK for good years ago, but I still have a private limited company there (that I own 100%) and because of that I have to file self assessment which is just a series of zeros in every input ...
3
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1answer
511 views
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
42 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 ...
0
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0answers
43 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 ...
2
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2answers
82 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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3answers
140 views
Private company investment
When someone or a company invests in a startup, does the existing owner take some money from the new investment?
For example, if Amazon invested $2 billion in my company, can I take some from it for ...
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2answers
60 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
211 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 ...
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1answer
83 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
947 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
85 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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2answers
110 views
Ownership of unlisted foreign corporation
I am a naturalized US citizen born in the UK, living in America. Can I buy stock in a privately held German company which is not listed on any stock exchange?
56
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5answers
16k 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
171 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
408 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
121 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
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1answer
254 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 ...
3
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1answer
148 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 ...
5
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4answers
675 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 ...
2
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1answer
185 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
720 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
2k 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 ...
0
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2answers
2k 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 ...
8
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1answer
242 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
219 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
602 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
197 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
349 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
86 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 ...
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2answers
1k 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 ...
