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Continue reading →: Operating Agreements 101: A Complete Guide for Small Business Founders and OwnersIf you’re starting an LLC, someone’s going to bring up an “operating agreement” pretty early on. It sounds like legal mumbo-jumbo but think of it as the rulebook for your business, who owns what, who decides what, and what happens if things get messy. Getting this right early saves you…
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Continue reading →: Equity Dilution: What Every Founder and Investor Needs to KnowWhat Is Equity Dilution? Equity dilution is the reduction in your ownership percentage when a company issues new shares (or equity units) to investors, employees, advisors, or through convertible notes. It’s a natural part of startup growth, every time you raise capital or grant options, the pie gets bigger, but…
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Continue reading →: The Invisible Engine: The Economy Nobody Talks AboutEvery earnings season, the financial press performs the same ritual. Thousands of journalists descend on quarterly reports from a few hundred publicly traded companies, parsing margins, grilling CEOs, debating what the S&P 500 is signaling about the American economy. Washington does the same, using stock indices as shorthand for national…
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Continue reading →: Capital Gains Tax 101: A Simple Guide for Angel Investors and Startup FoundersImagine you put money into a startup as an angel investor or you own shares in the company you helped build as a founder. One day, the company sells or goes public, and you cash out your shares for a nice profit. That profit feels great, but the government wants…
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Continue reading →: What is QSBS? A Guide for Small Business Owners, Founders and InvestorsDefinition: QSBS stands for Qualified Small Business Stock. It’s an IRS program that allows qualified founders and investors to exclude up to 100% of your capital gains. QSBS Intro If you’re a founder, early employee, or investor in a startup or small business, you’ve probably heard whispers about QSBS, and…
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Continue reading →: Pre Money Valuation vs Post Money Valuation: The Startup Funding 101 GuideIf you’re a founder raising capital, an early employee with equity, or just curious about how startups get funded, you’ve probably heard the terms pre money valuation and post money valuation thrown around. They sound similar, but the difference between them can mean millions of dollars in ownership and a…
