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Congrats. It is not clear from your wording if you are seeing a tax attorney to handle your business or personal finances, or both. md1515 is correct, there are
by yourapostasy 15y ago
Congrats. It is not clear from your wording if you are seeing a tax attorney to handle your business or personal finances, or both. md1515 is correct, there are specialized use cases for an LP for personal finance, unless you start to get into asset protection type or capital gains treatment schemes. I have some friends whose wealth is in the 1x-3x range of what you posted. One is in the energy business; he lets Brown Brothers Harriman handle a large portion of his assets. Another co-founded one of the top HFT firms in the nation; he's diversifying into various more conventional investments. The third was a principal programmer in that HFT firm from its early days; he self-manages and is doing some angel investing.
As you can tell, there is no one "right" answer. A lot depends upon your life goals and risk profile. The first friend is nurturing a generations-old wealth. The second is trying to propagate generational wealth. The third is trying to establish generational wealth. If none of your financial advisors have asked you to set down on paper what you want to do in life and how much it will take to fund that ambition, then you might want to center yourself and put that down to draw a starting line in the sand. From there, you can talk to them about how much volatility you can stomach, how much needs to be drawn and when, etc.
It cannot hurt to get second and third opinion advice this early on your tax implications before the sale closes. Bob Hope was famous for deferring a lot of his pay into capital gains forms once he made enough to live on, and this greatly magnified his earnings over the years. If there is a portion of your sale that you are willing to put into that form, then now is the time to talk with your tax advisors about it before a more adverse tax treatment is taken upon your sale income.
If you feel at all uncomfortable with the advice you are receiving (including and especially mine!), then one option is to take the uncomplicated tax treatment hit now and sit on the gains until you are more comfortable with a specific set of actions. There are far worse situations to be in than paying a large tax bill now and parking the remainder into [CDARS](http://www.cdars.com http://www.cdars.com), then taking whatever time you feel is necessary to gather your data and thoughts before you pull the trigger on structuring the gains. As my CPA tells me, some of the biggest tax payments he oversees each year are from clients who are too busy making money to complicate their lives further with tax efficient structuring. The interest alone on say, $10M (after taxes and fees) in CDARS, is around $100K, which should be sufficient for you to step back, take a deep breath for a year, and figure out where you want to go next. Even taking into account the "opportunity costs" of a naive tax treatment, that is really cheap insurance against hastily making a catastrophically bad decision in the heat of the win.
You can also contact pg, he certainly can give you advice programmer-to-programmer.