Our private company seeks advice on how to add shareholders or give stock options with least tax implications from an experienced corporate attorney or tax lawyer. After consultation project, Company may create a follow-on project for updating agreements and possible long-term relationship as our corporate attorney. We believe that our efforts will result in disruptive, enabling technology of great value. We have an ongoing service business that is profitable but the effort to develop a new game-changing platform is causing us to run deficit at this time.
Private company Chairman and CEO wants advice on how to handle changes in our stockholders and stock options for our NY State LLC formed in 2005. The majority stockholder (90%)wishes to transfer some interest from his 90 % ownership to each of his 2 children to avoid future inheritance taxes. The owner also wants to give some employees, and advisory board members stock options to give incentive and keep them. The company does not wish to have recipients of stock or options incur tax obligation if legally avoidable.
The Company is currently doing poorly with ongoing cash loss on a monthly basis financed by personal debt loan to Chairman and best way to handle loans. The Company has ongoing service revenue but anticipates continued losses for the year. There are no other debts. Assets include minimal accounts receivable and computer equipment that are a fraction of losses and debt. Losses are due to software development efforts but until completed in 6-12 months the enterprise cloud platform is unsalable. Giving stock at this time might avoid any tax liability and also will incentivize employees since there are no funds available for additional salaries.
Please submit relevant education, experience and rate per hour and the number of hours needed to advise as to options and explain recommendations for a fixed consultation cost. Include any other information needed and agreement to sign a NDA or work under US lawyer confidentiality. Must have familiarity with NYS LLC laws, valuation methods acceptable if audited, and preferable ability to draft appropriate documents.
March 15, 2018
I am willing to pay higher rates for the most experienced freelancers