New Business? Which Entity Type is Right for me?

New Business? Which Entity Type is Right for me?

When establishing a business, it is important to consider what type of entity your business will be. Aren’t they all the same, you ask? Why no, they are not. Your accountant can be very helpful in determining what type of entity your business should be, as well as helping you to file the proper paperwork. According to Kelly Phillips Erb at Forbes, “entity choice can determine shareholder & partner numbers and identity; equity structure, control & management, as well as what kind of funding you might be eligible to receive.”

The following are types of entities:

Sole Proprietorship
General & Limited Partnerships
Limited Liability […] Read more

When Paper Beats Cash—helping executives measure the value of stock options

When Paper Beats Cash—helping executives measure the value of stock options

Employees these days have a number of factors to consider when going into a new job and negotiating compensation. Is it better to have a higher salary and fewer stock options? Or a lower salary and more stock options? According to an informal survey conducted by Forbes magazine, most employees have no idea how to place a value on options and make a clear decision. Factors to consider are:

Vesting (will you still be with the company by the time your options vest?);
Expiration (the options probably expire if a private company never goes public while you are there);
Liquidity (it’s possible your […] Read more