A guide to calculating tax savings from the Qualified Business Income Deduction for owners of an LLC, S Corp, partnership, or sole proprietorship In 2017, Congress passed the Tax Cut and Jobs Act. This new law provides large tax deductions for owners of certain pass-through entities. Beginning for the 2018 tax year (and continuing every year through 2025, unless extended by Congress), owners of pass-through entities can deduct up to 20% of their share of…

There is no denying that right now is an exceptionally difficult time for small businesses and startups. But the government is trying to ease the pain. Last week, Congress passed the CARES Act, a $2 trillion coronavirus relief package. The legislation established or expanded several programs to help small businesses. Here’s how it could help you and your business. Paycheck Protection Program One of the largest parts of the CARES Act sets aside nearly $350…

Last week, the FTC announced that it would review its Endorsement Guides. The Guides – last updated in 2009 – help influencers, endorsers, celebrities, and companies navigate the FTC’s regulatory scheme. Although the Guides are advisory, they explain when the FTC might bring an action under Section 5 of the FTC Act, which generally prohibits deceptive advertising. Reading through the Endorsement Guides is a must for any company advertising on social media or using…

You just invested money to start an LLC. Now you want to bring in partners to manage the company or help with the work and offer them some form of equity compensation. How do you go about doing that? Unlike corporations, LLCs cannot issue restricted stock, stock options, or the like. But LLCs have an easy and tax efficient alternative called a “profits interest.” Profits interests can provide many benefits for their holders. The holder…

If you’re an entrepreneur trying to raise capital, or an investor looking to invest in startups, you’ve likely heard the term “accredited investor.” The definition of that term effectively determines who can access the private securities markets and invest in privately held companies. If you’ve been locked out of the private markets, then you may be in luck: The SEC recently announced plans to broaden that definition, expanding the pool of investors that can invest…

Like it or not, influencers are here to stay. According to Influencer Marketing Hub’s 2019 survey, influencer marketing will become a $6.5 billion business in 2019 and half of survey respondents intend to spend at least 20% of their marketing budget on influencers. Although influencer marketing is used by both large and small businesses alike, it’s particularly appealing to small businesses and startups, which lack the marketing budgets of their more established counterparts. In fact,…