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13

First off you need to consider startups aggressively subsidize their offer early on in order to capture market share. Popular examples of startups valued at billions of $ that were/are in the red include household names like Uber & Spotify that bled money for years on end. Also, take note social media platforms aim for the network effect and its a ...


8

“Taking in equity” means selling shares, generally newly-issued shares. “Getting a board seat” means that you can nominate a person of your choice to be one of the board directors of the company. So 500Startups sold shares to Abu Dhabi Financial Group, who now have a representative on the board of directors.


7

Assuming that all debts were paid, [...] As an owner of the company, would I be able to keep the devices as my own property? What could happen to me if I kept them for myself? spain When the company is terminated and assets are enough to pay debts, remaining assets are distributed among shareholders according their share quotas. If new debt arises after ...


6

When you link your bank account, you give approval. There's no specific approval because you've already given approval.


5

When a company shutters with excess assets after paying debts, the shareholders get to decide what they wish to do with those excess assets. If there are many shareholders (or even just one shareholder who insists on getting an exact fair share), the excess assets would likely be sold to the highest bidder or written off. If you really want the antique ...


4

If a person/company makes a large investment in a company they can require as a term of that investment that they be given a seat on the board of directors. This gives them the inside information they desire, and the ability to participate in corporate decisions. The investment must be large or strategic in order to be given a seat on the board.


3

The U.S. Customs and Border Protection collects tariffs. There is a complicated process for them to determine the category a product fits in, and then they invoice the importer for any tariffs duties, or fees. Filing a formal entry (for goods valued at $2500 or more) No more than a week before the expected arrival of your goods in port, or no later ...


3

No, a bank branch will not open an account for you in a different state. Each state has significant local law and regulation, and a banker in CA is very unlikely to hold credentials for AK. However, they probably will act as a customer service agent for a remote branch in the correct state; the remote branch will be making all the decisions (or submitting ...


2

Many companies offer free services to individuals, but charge corporate users for support (example: Red Hat Linux). Could it be that? Otherwise, it is fairly common practise to offer free services to build a critical amass of users. Once acquired, you can start charging them, although you will probably lose many users. Or, you could introduce premium ...


2

Tax returns are not public information. You can't see the tax returns of another person or corporation without their permission, and they can't see yours without your permission. (source) If you can get the other party to sign a Form 4506-T then the IRS will provide you with a transcript of their tax return.


2

You get what you pay for. The more you want to hide the connection the more expensive the setup. If you setup a shell corporation, but use as a mailing address an address that is associated with you, finding the connection is trivial. The more you are willing to pay, the more complete the masking is.


1

A person who meets the IRS definition of a full time trader can apply for Trader Tax Status and receive many business tax breaks like deduction from gross income of business expenses, employee benefit deductions for retirement plans, health-insurance premiums, MTM tax treatment (no wash sale limitation), etc. Hence, such a full time trader would be ...


1

In the UK, there’s a banking transfer service called CHAPS that’s used for large transactions like house purchases. Unlike the BACS service used for normal bank transfers, CHAPS payments are guaranteed to arrive on the same business day. But there’s a fee of around £25, so it’s not used for small transactions.


1

Several years ago, I made a purchase for over $40K (US dollars), where it was important that the transaction go through very quickly. The vendor would have taken a credit card, but would have charged an additional 2% or 3% to cover the credit card fee. This was a transaction at a distance, so I could not physically hand him $40,000 in cash or a $40,000 ...


1

Property transactions in Australia are typically settled via bank cheques. These transactions can run into multiple millions of dollars, so that covers all but your billion-dollar scales. At the billion-dollar scale, you’re probably on a first name basis with the bankers’ bosses, giving you a lot of flexibility in relation to payment mechanisms. Legal ...


1

No. The business has a price, and the taxes are the responsibility of the buyer. It basically IS a shady way to raise the business price ("Oh, I meant without taxes, so pay more money to cover my taxes"). Simple as that. Now, it is not unheard of that the seller covers taxes (AND debt), but in those cases this is still considered part of the payment and it ...


1

You can't use a personal account. The issue isn't about how you are taxed. If you are a business then banks want you to use a business account. They charge fees differently, they provide a different basket of services, they expect a different amount of activity for a business account. What type of services? Multiple people allowed to sign checks, hundreds ...


1

One reason to open a "business" account: your bank's terms and conditions may require you to do so. For instance, from Bank of the West's Personal Checking account page: Regular Checking A non-interest bearing checking account for personal use, with no service charges and no transaction limits. and from their Business Checking account page: ...


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