IRS States That DFS Operators Are Liable For Excise Tax
A recent IRS Internal Memorandum has ruled that DFS operators must pay federal excise taxes on entry fees, a viewpoint that, if enforced, could have widespread effects on the fantasy industry.
The Mechanics of Converting Convertible Notes
Convertible notes are a great tool for venture financing, however, the actual mechanics of converting convertible notes is not a simple task and requires great care.
Understanding The New Post-Money Safe
While Y Combinator’s new Post-Money SAFE did simplify the process for calculating early-stage equity, it may become problematic under two scenarios.
Keep Your Investors Updated (Part II)
A few years ago I wrote a blog about how important it is to keep your investors updated. That is as true today as it was then, but I want to highlight another benefit that I neglected to point out then: […]
The Hidden Cost Of Accelerators
Accelerators are popping up all over the place. And I’m not sure that this is a good thing. Typically, an accelerator provides a little cash for a little equity, and some guidance or advisory services for a little more equity. Some […]
Believe In The Value Of Your Product
I ran into a client this morning who told me about a difficult negotiation he’s currently having with a critical customer. The customer represents a significant portion of his startup’s revenues, but servicing the contract is so cumbersome that it […]
Beware Of Your First Investor
We’re well aware of how critical it is for a startup to raise capital. I’ve yet to see a startup that can generate revenues without raising capital. This is the same for just about all small businesses besides service businesses. […]
How Much Equity Should We Get?
From time to time we’ll get a client who asks us to help determine the equity split between co-founders. As attorneys to the company, it’s not our place to say who should get how much equity. But we can help […]
Understanding Basic Contracts: The (Ir)Relevant Title
A client reached out yesterday to ask what the difference was between an independent contractor agreement and a master services agreement. He had two sitting in his inbox – different titles, though they were for the same project. At their […]
Understanding Basic Contracts: The Payment Provision
I know, it seems like a simple contractual provision. It can be, but a lack of detail in the payment section of a contract can be disastrous. Take the following provision for example: Payment: “Contractor shall be paid $40,000 for […]