ICO Accounting

Question: How are ICOs treated on the balance sheet of the issuer (i.e. are tokens treated as unearned revenue?)? What are potential ramifications on valuation? ICO’s-Initial Coin Offerings are a new financing tool used by companies. These offerings are un-regulated crypto-currencies and therefore popular with startups that want to raise funds without the high cost Read more about ICO Accounting[…]

Should I file my startup in Delaware if it’s located in Texas?

My answer to Should I file my startup in Delaware if it’s located in Texas? Answer by Wray Rives CPA CGMA: If you will operate your Texas startup from Texas, you will have to be registered in Texas no matter what. The only reason to register in DE is because you intend to seek outside Read more about Should I file my startup in Delaware if it’s located in Texas?[…]

What is the best state to incorporate in for a foreign startup?

What is the best state to incorporate in for a foreign startup? Answer by Wray Rives: There are so many variables, all I can do is give you some general ideas about foreign nonresident owners of US entities and what states make “tax sense” for the non-resident owners. First I assume you that you want Read more about What is the best state to incorporate in for a foreign startup?[…]

Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey? What are the pro’s/cons?

Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey?  Answer by Wray Rives: Should you register you startup LLC e-commerce business in Delaware? If you operate the business in New Jersey, you will still have to register the LLC as doing business in New Jersey and pay Read more about Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey? What are the pro’s/cons?[…]

Update on cloud accounting apps

It is time to update my summary of online/cloud/SaasS bookkeeping apps.   This was originally an answer to a question on Quora about what is the best cloud accounting solution for a small business.  The answer is that the best solution is one that the small business can and will actually use.  There are a Read more about Update on cloud accounting apps[…]

Understanding an 83(b) Election

If you have been involved with a startup company, you very likely have run into grants of restricted stock and the decision if you should make an 83(b) election. Basically an 83(b) election is a choice you make to assert your rights under section 83(b) of the Internal Revenue Code. Section 83 deals with the Read more about Understanding an 83(b) Election[…]

Tax

S-Corp or LLC?

One of the biggest considerations when starting a new business is how that business is going to be organized legally and for tax purposes. There are four different business entity types to consider. Sole Proprietorship -Single individual owner (with the exception that a married couple can also file as a sole proprietorship)  For federal purposes Read more about S-Corp or LLC?[…]