As of January 1, 2024, the Corporate Transparency Act (CTA) marked a significant shift for small businesses in the United States. This new regulation mandates that specified business entities disclose their ownership details to the federal government, initiating a transition toward greater operational transparency and adherence to regulatory standards among small enterprises. This legislation aims to cultivate an Read More
Structuring Your Venture Capital Fund
Fund structure is critical in defining the trajectory of investments and returns. This is particularly true for emerging managers who are in the process of establishing their funds. A well-structured fund offers numerous advantages, including efficient capital deployment, risk management, and investor appeal. Structuring your venture capital fund requires closely examining some strategic decisions that shape a Read More
Effective Fund Formation Tactics for Venture Capitalists
In venture capitalism, the formation and management of investment funds are pivotal. The venture capital market has seen remarkable growth, with global venture capital investments reaching over $300 billion in recent years. This surge underscores the significance of legally sound and strategically efficient fund formation practices. For venture capitalists, understanding the intricacies of fund formation is not just Read More
Ensuring the Legacy and Continuity of Wealth Through Buy-Sell Agreements
Planning emerges as a critical element when considering the sustainability of a business, especially amidst unforeseen circumstances. Companies warrant attention and strategic foresight. Approximately 20% of businesses in the United States experience ownership transitions each year, substantiating the importance of calculated ownership transition strategies. This is particularly relevant for enterprises with numerous Read More
The Corporate Transparency Act: A Breakdown Of Its Mandates and Implications
Under The Anti-Money Laundering Act of 2020, which was part of the National Defense Authorization Act for FY 2021, the Corporate Transparency Act (“CTA”) was made into law and requires a certain number of business entities to prepare and file “beneficial ownership” information with the Treasury Department, particularly the Financial Crimes Enforcement Network “(FinCEN”). CTA was designed and passed to promote Read More
Strategies For Business Succession
For high-net-worth business owners and entrepreneurs, the stakes are high when exiting your business – whether planned or unplanned. Having a succession plan is paramount to ensure your business will transition and be passed on consistent with your wishes. Buy-sell and other similar agreements are critical to ensure your business goes to those you have chosen – in the event of an unexpected death or disability. These Read More
Jurisdictional Decision Points & Charging Orders Of Protection
Choosing the proper jurisdiction for your business is paramount, especially in the ever-evolving global economy. There are countless considerations, from tax implications to regulatory landscapes. However, one critical factor stands out above the rest: asset protection. Titans have often championed the importance of smart financial decisions, and choosing the proper jurisdiction for your business lands nicely Read More
The Connection Between Asset Protection Planning And Insurance Planning
Asset Protection Planning and Insurance Planning work hand-in-hand to protect you, your family and your business: one without the other makes you vulnerable and susceptible to unnecessary risks. Your legal structure should be underpinned by the proper property, casualty, commercial, and life (and health) insurances. The risk of unexpected or untimely death is inherent to every business owner. Not having enough cash Read More
Should I move to Puerto Rico to pay less tax?
From time to time, clients anticipating the sale of their business or other large liquidity events will ask me about the Puerto Rican tax regime and the potential tax benefits of moving there. For those willing to actually move there and for those who can develop or transfer their income to Puerto Rican-sourced income, the tax savings can be incredible. Here is a helpful article in Forbes found here that discusses Read More
Is a Spousal Lifetime Access Trust (“SLAT”) right for me?
SLATs are a fairly new estate planning tool – used to transfer assets out of an individual’s taxable estate to take advantage of the current lifetime exemption amount. There has been much written about them, including the following articles in or by: Fidelity; Northwestern Mutual; Forbes; and Wells Fargo. SLATs are irrevocable trusts and ostensibly cannot be changed (although substituting assets is Read More