3 ms·
that’s yucky. you’re messing up your cap table (the equity is just going to yourself) to avoid patriating money to avoid paying taxes. for the paltry sum of $50
by techslave 7y ago
that’s yucky. you’re messing up your cap table (the equity is just going to yourself) to avoid patriating money to avoid paying taxes. for the paltry sum of $50k. just give the company a personal loan.
it’s way too early to start financial engineering.
- chews 7y agoI would not say that it is yucky, it is not that uncommon to see in startup incubators a part of their "standard deal" is a whole bunch of services provided at retail cost to the startup and to be paid later. This is often how lawfirms take risk in startups, they structure it as 200K in legal services and I've seen its expressed as a claim on their captable.