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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Where do I find Post Money Valuations of Private Companies? [closed]

Where do I find Post Money Valuations of Private Companies? Ideally a free website, but paid ones would be fine too. Sometimes Crunchbase has them and sometimes they don't. For example, what is ...
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Does Liberalised Remittance Scheme (LRS) apply on Private Limited company - India

I own a small Private limited company in India. And I just received some inward remittance from abroad. Where my bank charged me for using forex services provided them which is almost towards the 1% ...
Saurabh Gupta's user avatar
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7 answers
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Can a company with a very large valuation still be held privately?

We see many companies with extremely high valuations like Microsoft, Google, Amazon etc. All these companies are held publicly. (Although the founder might be holding a large portion of the shares; I ...
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How to structure a company/entity that accepts money from friends/family to invest and gain interest/dividends/gains?

I have a few interested friends and family that are looking to invest money. They come with various backgrounds/experiences in investing but given a connection they are willing to try a different ...
perennial_noob's user avatar
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1 answer
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Trying to understand stock share dilution

Say I pay $100,000 for 10% of a new company founded by a entrepreneur, and then the entrepreneur decides to give 20% of the business to person X, for free, as they feel person X can add tremendous ...
Vivaan Daga's user avatar
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Minimum wage in an international payroll context

Suppose a UK private limited company is hiring an employee from an EU country. The employee is hired as an actual full-time employee, i.e. not as a freelancer or as a consultant. Does the UK company ...
Paul Razvan Berg's user avatar
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Starting a family fund, owned by a parent company?

first post here. I have been doing some research, but I am still not 100% sure on this. A little background: I live in NY state, have a Bachelors Degree in finance and data analytics. My situation: I ...
bigdogg99juherd's user avatar
15 votes
2 answers
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What are my rights as a small investor in private equity, and what can I do about the company not responding to me?

I invested a small amount of money into my previous employer's employee stock options program. When I left the company a few years ago, I decided to exercise some options that had already vested. The ...
mxk's user avatar
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If he wanted control of the company, why didn't Elon Musk buy 51% of Twitter shares instead of 100%? [closed]

This might be a simple question but the answer escapes me. Elon Musk wanted full control of Twitter, so he bought every outstanding share and made the company private. Couldn't he have achieved the ...
Martín Fixman's user avatar
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Am I taxed on the capital passed to my personal account when closing the company in Estonia?

I am a freelance software developer from France. I lead a few others which I hire as contractors to work for companies. I am thinking about opening a company in Estonia as it seems I would be less ...
Revolucion for Monica's user avatar
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Are software development and consulting services tax-exempted for a newly registered company in Ireland?

TL; DR: I am moving from an "auto-entrepreneur" situation in France to opening a business and I am looking for the best country between the UK and Ireland that could host my business in ...
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Hostile takeover bid to turn company private - how does it work (current context: Musk / Twitter)?

With regard to the current coverage of Musk announcing his wish to turn Twitter into a private company, I'd appreciate some clarification: Twitter stock, according to Yahoo Finance, is owned by ...
Zubo's user avatar
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How much percentage of company will I own? [closed]

I am going to start my tech company (private limited). The authorized capital of the company is $100K with 100k common shares ($1 per common share). I issued 10k common shares for me. Later, I got an ...
John's user avatar
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What type of company/business can be registered with one person?

In some countries, a company must at least has 2 board members to be registered. What about the US? What type of companies can be registered with only 1 person in the US? EDIT: My interest is a S-Corp ...
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Individual tax from dividend of Georgian Virtual Zone Company

I am programmer. I would like to open Company in Virtual Zone of Georgia. I will be tax resident of Georgia. I do not know what tax should I pay. I will have only clients out of Georgia. So in my ...
Daniel's user avatar
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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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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?
Aditya_math's user avatar
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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?
RandomJo231's user avatar
1 vote
1 answer
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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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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 &...
Jaquavion C.'s user avatar
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1 answer
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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 ...
Rajorshi Koyal's user avatar
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2 answers
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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 ...
Roger R's user avatar
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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 ...
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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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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 ...
user106282's user avatar
1 vote
2 answers
198 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 ...
Daniel Mihaila's user avatar
1 vote
0 answers
28 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 ...
Aksakal almost surely binary's user avatar
1 vote
1 answer
51 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 ...
shabunc's user avatar
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15 votes
7 answers
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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 ...
Franck Dernoncourt's user avatar
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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 ...
Outsider's user avatar
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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?
letthefireflieslive's user avatar
3 votes
1 answer
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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 ...
Peter's user avatar
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1 answer
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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 ...
Flux's user avatar
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1 vote
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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 ...
user1034912's user avatar
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0 answers
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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 ...
Chenna V's user avatar
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2 votes
2 answers
101 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 ...
bitmaker's user avatar
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1 vote
3 answers
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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 ...
Richard Blanton's user avatar
1 vote
2 answers
76 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 ...
s5s's user avatar
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3 votes
1 answer
317 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 ...
Matt's user avatar
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0 votes
1 answer
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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 ...
Arash Howaida's user avatar
7 votes
8 answers
1k 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 ...
Anthony's user avatar
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0 votes
1 answer
86 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 ...
Nawaz Dhandala's user avatar
0 votes
2 answers
118 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?
John Wi's user avatar
57 votes
5 answers
17k 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 ...
user2302909's user avatar
1 vote
1 answer
201 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 ...
Brandon's user avatar
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-1 votes
2 answers
531 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 ...
Delta Oscar Uniform's user avatar
2 votes
1 answer
165 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 ...
marktristan's user avatar
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4 votes
1 answer
282 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 ...
Roger Lammin's user avatar
37 votes
1 answer
9k 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 ...
Uncoke's user avatar
  • 489
3 votes
1 answer
179 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 ...
Bill Seitz's user avatar