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Do I have to pay taxes on funding?

Chris Barsness, startup, finance, law, and tech nerdThe question is more of timing of revenue recognition.  In the new JOBS act type funding, it will be investment in equity, so there isn't really a tax issue for the issuer (there are some t…

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How can I reveal my ideas to VC's while protecting them from being stolen?

Chris Barsness, startup, finance, law, and tech nerdAs an attorney, I would answer that a good NDA is invaluable; however, in the world of business, finance, and VCs, asking any potential investor or business partner to sign an NDA right off the bat m…

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Can a crowd-funding investment be used for an issuing company to purchase property (that would only be offered for sale to them) for conversion to a business use?

Chris Barsness, startup, finance, law, and tech nerdWith the caveat that the SEC hasn't implemented its rules based upon the JOBS act yet, I will answer your question generally, but crowdfunding is not yet able to be used in many contexts until t…

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What standard terms and typical startup costs should an entrepreneur expect in an engagement offer from a startup lawyer/lawfirm?

Chris Barsness, Lead experience getting startups off the ground…It really depends upon the extent of work you need done.  You may not known until you meet with them to explain your business and where you are at in development.  There will …

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What can my friend do if the startup he has stock options in fires everyone, and then rehires them for a different company that does the same thing?

Chris Barsness, startup, finance, law, and tech nerdThere are a number of factors, but he is probably out of luck in all reality.  That's just one of the risks you take when you work for a startup and agree to stock or options.  If he w…

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Is it normal for a startup law firm to ask for a nominal amount of stock in exchange for deferring fees?

Chris Barsness, startup, finance, law, and tech nerdWhen dealing with startup businesses, some lawyers realize that they can make more from equity in the company that the actual fees in cash (not to mention the fact that many startups start out cash p…

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