I never understood how the internet crowd moved from Paul to Obama. The two could not be on more opposite ends of the spectrum from an economic theory perspective.
370 karma · joined May 17, 2008
Entrepreneurs "have business to do" as Mark puts it because they stand to make some money from their efforts. The less money they stand to make, the less incentive. period.
Also, you state the following as if its fact:
"what capital gains taxes really do is favor the ultra-wealthy who live off of their investments, rather than those generating wealth directly"
No. In order for the ultra-rich person in your example to have accumulated $5M, he EARNED $6,750,000 and paid the government $1,750,000. So, by paying tax on his investment income, he's paying tax twice on the same money. That simple error aside, you're also missing the point that capital gains tax discourages investing in companies! Which has an impact on a company's cost of capital which has an impact on the price of goods and services which has an impact on you.
The competition has figured out that design and weight matter and as a result has produced some pretty nice looking, very portable machines... for a lot less.
I personally am sticking with my iMac/Macbook, however as price becomes more of a factor, I think that negatively impacts apple.
(go there in any browser except IE). This is pretty much the case for all PwC webapps. PwC = >25,000 U.S. employees.
Maybe Eddy Cue, the new head of MobileMe, reads HN. If so, you're welcome.
We've got first round capital out here.. and ben franklin partners. I'm glad to add another source for early idea funding to the mix.
The most exciting part about flipping through the 27 pages this morning was that there is still A LOT of room for more innovation.
never had a problem.
1. Self-employment taxes: A primary advantage of an S-Corp is that you can avoid having to pay a portion of your self-employment taxes, if you plan on taking more than "a normal salary" for yourself from the business. (I can elaborate on this if you want.)
2. Acquired/Investors: S-Corp's sometimes make it easier to be acquired or to be invested in.
3. Ease of operation: LLC is very easy to setup and maintain from an administrative perspective. (I've always heard this, but admit I don't know exactly how "hard" an S-Corp is, paperwork wise, or how "easy" an LLC is)
4. Shareholder limit: S-Corp can only have 100 shareholders, LLC doesn't have this limit.
5. Profit distribution. S-Corp you must distribute profits in proportion to equity ownership. LLC can distribute however it wants. (This one seems odd, and although I know it to be a rule, I don't know the details of how its carried out or enforced)
Although we're only around towards the end of the transaction, bankers are involved from the beginning. They typically get an offering memorandum together, help the company organize their financial data, contact potential buyers and do anything else necessary to facilitate a smooth transaction acting on the seller's behalf.
As far as fees go, we're by the hour, but bankers may very well get a % of the total deal. I certainly don't make ibanker money, but there wouldn't be anytime for my hacking side projects if I did!