Strategic Intelligence for social impact ventures with international ambitions. Founded VC fund, EIR @Impact Fund, Mentor@Princeton Entrepreneur Center. Google me. https://calendly.com/kwame-dougan
The new tax bill changed the game dramatically. Old rules just don't apply anymore but it's more confusing and more expensive. I'm using this medium to demonstrate the value of a good advisor.
I'll ask you the right questions and provide the resources to allow you to draft your own agreement, saving money and avoiding headaches over the long term.
As a tax attorney and enrolled agents, I'm certified by the IRS to represent taxpayers before the IRS. An EA has "unlimited practice rights," meaning that they are allowed to represent any kind of taxpayer—individual, business or organization—and are authorized to deal with any federal tax issue, including defending them in audits.
Answers so far sound pretty accurate. As a securities attorney that's advised hundreds of startups, here are my tips: First, connect with other successful, more advanced founders. They can advise you on the mistakes they made at your stage and make referrals. Second, don't focus on engaging experts before you've validated that investors care about a better plan, financial model, or valuation. If you've got something valuable, prospective investors will tell you as you start the early conversation. Finally, engage an attorney to ensure that you're not violating securities laws. A few hundred dollars for an in-depth conversation might save you hundreds of thousands later.
