

How Does Dilution Work?
New FoundersAt the outset, dilution is the process of pro rata deduction of ownership percentage as additional holders are added to a company’s capitalization chart. Dilution happens as the number of shares held by a person is static while the total number of outstanding shares (the denominator) grows (e.g. 1/1 = 100% | 1/10 = 10% | 1/100 = 1%). If you bring investors or others onto your company’s cap chart dilution is unavoidable...

The Tax Effects of Filing (or Not Filing) an 83b Form
New Founders
https://youtu.be/IC1iAb-UZJc
I don’t know anyone who likes paying more taxes than they have to. So, if you’re an entrepreneur and you’d like to keep more of your money, read on.
Part one (the basics). All shares…

Does My Company Need a Bank Account?
New Founders
https://youtu.be/WnhDXV1Sexs
By: Sean Valle
When working with startups, we often hear the question “does my company really need a bank account?” The short answer is yes. Here, we outline some of the reasons that maintaining…

How to Set (and Achieve) Goals in 2019
New FoundersThe 4 Disciplines of Execution is a book about how to make goals and then actually achieve them. Like many of you, the Fourscore team will be setting goals for the new year, and to do that, we are working through the 4 Disciplines in order to…

Qualified Small Business Stock
New FoundersOne important way that business owners can mitigate capital gains taxes on stock appreciation is to utilize the qualified small business stock (“QSBS”) rule. For many early stage founders and investors, this rule is highly advantageous…

Free Download: A Guide to Blockchain & Cryptocurrency
New Founders, Whitepapers
If you’re like most people, the terms blockchain, bitcoin, and cryptocurrency bring back the same sensation you may have felt when taking a high school vocabulary test – you probably heard the words before, but you cannot exactly…

Reducing Taxes for Investors
Financing, New Founders
https://youtu.be/7o_sV10mG2U
As the fall is quickly approaching, the time is now to consider tax strategies to reduce your obligation. Although many business owners start trying to figure out their taxes around February or early…

What is a Profits Interest?
Financing, New Founders, ResourcesWhile corporations are able to offer shareholders an equity stake in their business in the form of stock options, limited liability companies (LLCs) taxed as partnerships are more restricted in their ability to provide equity compensation. A…

How to Issue Stock Options in an S Corp
New Founders, ResourcesCan you do it? Yes. But let’s start with some background info.
One thing that many people do not realize is that the S corporation is simply a tax designation that founders may make upon incorporating their business. From a state perspective,…