Articles

If you own stock that is QSBS, you are probably aware that you may be eligible to receive a significant exclusion on capital gains taxes when you sell your company. What founders do not often know is that they can multiply this exemption using certain types of trusts.

A core concept in trademark law that every startup founder should understand is “likelihood of confusion.” This legal standard plays a pivotal role in both trademark registration and enforcement.

Forming a legal entity is one of the first big steps for a startup, so if you have reached this stage, congratulations! Now comes the hard part: choosing which type of legal entity to form.

The Supreme Court in South Dakota v. Wayfair, Inc. overruled the “physical presence” requirement as “unsound and incorrect” and ruled that “substantial nexus” is satisfied when an out-of-state seller has sufficient “economic and virtual contacts” with the state. The prior Supreme Court precedent in National Bellas Hess, Inc. v. Department of Revenue of Illinois and Quill Corp. v. North Dakota required out-of-state sellers to collect and remit sales/use tax on retail sales of certain tangible personal property and services only if the seller had “physical presence” with the state.

After an intensive legislative process, tax reform is here to stay. The Tax Cuts and Jobs Act, entitled the “Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018” (the “Act”) has passed. While employers are breathing a sigh of relief because some of the more far-reaching amendments initially proposed by the House and the Senate were ultimately not adopted as part of the Act, employers should prepare for changes to their compensation and benefit arrangements that are now law.