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Cairncross & Hempelmann

How to Exchange IP for Shares of Stock in your Startup

Founders of technology startups typically pay for their shares at incorporation by contributing intellectual property (“IP”) they have developed and that relates to the business of the startup.

Cairncross & Hempelmann

Fully-Diluted Capitalization – What it Means and How it’s Used

You hear a lot of jargon in the world of technology startups and venture capital, and “fully-diluted capitalization” or “on a fully-diluted basis” are some of those terms that get thrown around a lot, but often times are not fully understood.

Cairncross & Hempelmann

Authorizing and Issuing Shares

After a technology startup has been legally formed as a corporation, shares of its capital stock need to be authorized and issued to its founders.

Cairncross & Hempelmann

Understanding the 83(b) Election

If the shares of stock you acquire in your startup are subject to vesting (or a “substantial risk of forfeiture” as the IRS calls it), then you typically want to make what is called an 83(b) election.

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Understanding Vesting

When founders launch their new startup, optimism is typically running rampant. However, it is not uncommon for one or more founders to leave the very startups they launch within the first few years.

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Restaurant Owners Take Note: Capital Gains Tax Legislation Proposed for 2016

The proposed legislation to impose a new capital gains tax in Washington State (House Bill 2224) should have little or no immediate effect upon a typical restaurant operator. This is because restaurant owners usually recognize ordinary income from their restaurant operations, not “capital gain” as defined in the Internal Revenue Code and in this bill.

Cairncross & Hempelmann

Considerations When Naming Your Startup

In this day and age, choosing a corporate name is no easy task. After you think you have identified the perfect name that embodies everything your new startup stands for, your work has just begun.

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Launching the Company – Entity Selection

You’ve had your epiphany moment, and now you’re ready to form your company and build the next white hot technology startup. But which type of entity should you choose?