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Considering Converting an LLC into a Corporation? Here Are the QSBS Issues You Should Be Thinking About.
Articles, Form a Company Guest User Articles, Form a Company Guest User

Considering Converting an LLC into a Corporation? Here Are the QSBS Issues You Should Be Thinking About.

A common question we receive from founders is whether to organize their start-up business as a corporation or as an LLC . While there are many non-tax related factors that need to be considered, this is often (at least in part) a tax driven decision. Organizing the business as an LLC can come with certain tax advantages, such as avoiding an entity level corporate tax and, subject to various limitations, permitting founders to use losses generated by the business and passed through on their Schedule K-1 to offset their other income. Alternatively, while organizing the business as a corporation results in an entity level corporate tax and precludes the pass-through of losses, it may permit the founders to access the “qualified small business stock” (QSBS) rules of Section 1202 of the Code.

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Mintz Launches In Canada, Expanding Life Sciences And Private Equity Practices
Cassidy Wang Cassidy Wang

Mintz Launches In Canada, Expanding Life Sciences And Private Equity Practices

BOSTON, TORONTO – Mintz is pleased to announce its expansion into Canada with the opening of a Toronto office, launched by a team of highly regarded and industry-leading attorneys. The new office will add depth and breadth to Mintz’s global Life Sciences practice and will further expand the firm’s strong Private Equity, Capital Markets, and Pensions and Employment practices.

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IRS Issues Notice 2023-44 Clarifying the 48C Program Application Process and Timeline
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IRS Issues Notice 2023-44 Clarifying the 48C Program Application Process and Timeline

On May 31, 2023, the Department of Treasury and the Internal Revenue Service released Notice 2023-44 to provide additional guidance on Section 48C, a revised and expanded allocation-based investment tax credit for qualified investments in eligible qualifying advanced energy projects. The Notice modifies and clarifies Notice 2023-18, which was released on February 13, 2023 and provided detailed mechanical guidance on applying for allocations of the Section 48C Credit

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MintzTech Connect: All Things Technology — May 2023
Newsletter, MintzTech Connect Dan DeWolf Newsletter, MintzTech Connect Dan DeWolf

MintzTech Connect: All Things Technology — May 2023

We lead off this MintzTech Connect edition with a feature of Dan DeWolf’s conversation with Vince Molinari on FINTECH.TV about the state of the venture capital markets. This is followed by an article about the benefits and risks of generative AI’s potential transformation of the legal industry. Finally, we spotlight Coefficient, a B2B SaaS platform that enables users to improve business insights and increase productivity for operations, analyst, and finance professionals at enterprises of all sizes.

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MintzTech Connect: All Things Technology — February 2023
Newsletter, MintzTech Connect Dan DeWolf Newsletter, MintzTech Connect Dan DeWolf

MintzTech Connect: All Things Technology — February 2023

We lead off this MintzTech Connect edition with an article about both the benefits and important critical considerations of extension rounds. This is followed by an article about New York’s Pre-Seed and Seed Matching Fund Program, which supports early stage companies in the state. Finally, we spotlight Moolah Kicks, the first and only women’s basketball brand with sneakers made to biomechanically fit female athletes.

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Benefits and Legal Risks of Embracing Generative AI Applications
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Benefits and Legal Risks of Embracing Generative AI Applications

One of the industries that can be transformed by generative AI is the legal industry. The revolutionary tools powered by generative AI raise many questions: will the legal industry prohibit or embrace this technology? If it embraces the technology, what will adaptation look like in practice? And, it even poses an existential question – does it have the potential of making lawyers obsolete?

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Board Warns Employers to Pare Back Overbroad Non-Disparagement and Confidentiality Provisions in Severance Agreements
Articles, Build Your Team Guest Contributor Articles, Build Your Team Guest Contributor

Board Warns Employers to Pare Back Overbroad Non-Disparagement and Confidentiality Provisions in Severance Agreements

Severance agreements offered to non-supervisory employees that include broad-based non-disparagement and confidentiality provisions are unlawful according to the National Labor Relations Board. The Board’s decision in McLaren Macomb, 372 NLRB No. 58 (Feb. 21, 2023), reverses Trump administration era Board decisions on this issue, and if upheld, may have far reaching consequences for both unionized and non-unionized workplaces.

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New York State Offers Matching Investment Funds for Qualified Early Stage Start-Ups
Articles, Raise Capital Sam Effron Articles, Raise Capital Sam Effron

New York State Offers Matching Investment Funds for Qualified Early Stage Start-Ups

New York Governor Kathy Hochul recently announced the establishment of a new initiative to match up to $30 million in funding received by early stage companies operating in New York. Through the Pre-Seed and Seed Matching Fund Program, start-ups could receive $50,000 to $250,000 to match investments in the form of convertible debt, a Simple Agreement for Future Equity (SAFE), or equity securities.

In this alert, we provide an overview of the program and its eligibility requirements.

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Extending for Success: The Rising Trend of Extension Rounds and the Importance of Due Diligence
Articles, Raise Capital Guest Contributor Articles, Raise Capital Guest Contributor

Extending for Success: The Rising Trend of Extension Rounds and the Importance of Due Diligence

In light of a slowing market, companies that have already secured venture capital funding are increasingly resorting to extension rounds as a means of obtaining additional capital in an attempt to avoid a down round financing and extend their runway until the fundraising environment improves. Extension rounds can provide several strategic benefits for startups.

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From the Edge - In the Boardroom: Special Edition - Lessons from Theranos
Podcast, Build Your Team Guest User Podcast, Build Your Team Guest User

From the Edge - In the Boardroom: Special Edition - Lessons from Theranos

Our In the Boardroom: Practical Advice and Guidance podcast series features insights from Mintz Members Steve Osborn, Melanie Levy, and Tom Burton on a wide variety of topics specific to boards. With the conviction and 11-year sentence for former CEO Elizabeth Holmes, the team looks at the lessons to be learned from Theranos. The team discusses (1) the importance of open communication between board members and executives, (2) fostering a culture of compliance, and (3) tips for picking up on the early-warning signs.

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MintzTech Connect: All Things Technology — December 2022
Newsletter, MintzTech Connect Dan DeWolf Newsletter, MintzTech Connect Dan DeWolf

MintzTech Connect: All Things Technology — December 2022

We lead off this edition of MintzTech Connect with an article initially published in The Deal titled “Top Five Ways to Accelerate Growth of Emerging Companies.” We have also included one of our podcasts regarding running an effective board meeting – a topic that should be of significant interest both to entrepreneurs and their lead investors. Finally, our Spotlight is on Ben Zises and his SuperAngel.Fund. In a short period of time, Ben has become an important player in the seed-stage financing world.

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Do You Have The Rights? How to Maintain Investor Confidence When Using Third-Party Intellectual Property
Articles, Grow Your Company Bertie Magit Articles, Grow Your Company Bertie Magit

Do You Have The Rights? How to Maintain Investor Confidence When Using Third-Party Intellectual Property

Imagine the following scenario: You, as the founder of a business, have spent the past three years building your company. You have been bootstrapping until now, but the company is at a crossroads and in order to grow the company to its full potential, you have decided to turn to venture capital to attract additional funding. Because yours is a younger company, and therefore a riskier investment, your potential investors have decided to conduct thorough due diligence to allay some of their concerns. You suddenly think about the third parties whose intellectual property your company uses in its regular operation – you paid for access to that intellectual property so you are free to use it however and whenever you want, right?

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