Is interest earned from convertible note added to the cost base in the schedule of investments when the note converts to preferred?
We are a VC fund considering making an investment in a PFIC and while I know there are reporting obligations during the investment period, what additional impacts are there from a tax standpoint around sale or divestment? Should we expect to pay...
Does it makes sense to make the S-Corp election for the LLC so that you can take advantage of the Pass-Through Entity Tax election (so that you can deduct your CA taxes and escape the $10k SALT limit).
If the fund draws 3% management fees in the first year of a $5MM fund, the firm has $150k to spend on its functions and salary. What are the business expenses and how much should we expect to pay for these?
Need either W-8BEN or W-8IMY to be on AngelList
If so, why? If not, why not? Do you recommend cash basis accounting for operations but also having accrual in your data room for future limited partners that require reporting on GAAP standards?
Question came to mind after reviewing the accounting section of Decile Hub
Question edited for clarity.
Hey all, How to create a capital call, when I do not see it in the top menu of the capital accounts? Thank you all!
With respect to a Cornerstone LPA 2.0 agreement; under what conditions would partners in a venture capital fund give back up to 20% of distributions to satisfy [fund] obligations?
Let's say you have a right to receive Pref Warrants from a Portfolio Company, but the company wants to change them to Common Warrants or Options that are a part of the stock option plan. All things being equal (e.g. strike and number of options),...
Since DCF method uses historical data to predict future cash flows of the company, this usually does not fit a startup since we have very little to no data on the cashflows. It is better to look for some benchmarks to tell valuation of a startup s...
What is the usual tax rate in the USA for non-US residents but who have a management company paying them a salary in Delaware?
One of my larger LPs can only invest in US entities, and my largest LP doesn't require but would prefer I domicile in Delaware. As a Canadian is that going to be an issue? Are there major tax issues I'll face? My wife is American, but not planned ...
Are LPA fund expenses annual or 1 time?
What do we need to put in LPA to help outside-US LPs don't trigger UBTI/UBI (paying US income tax)?
What is Qualified Small Business Stock (QSBS) (Section 1202)
What are the best practices to account for portfolio companies that are acquired through share swaps in your track record?
If one uses the Partner fees for some or all of the GP contribution is it taxed first?
What is the terminology VC Lab adopted for valuing a portfolio with convertible instruments being valued at their val cap?
How much does a US LP (person) pay in taxes (in a Delaware fund) after proceeds are distributed at the end of a fund?
Hi everyone I have an opportunity to create content pieces (video and blog) via industry conference. This involves significant costs I have not registered my fund yet can I count these expenses as marketing cost later when I launch my fund ? Is th...
One of my European LPs is asking about the US tax implications from becoming an LP in a Delaware LP or LLC. We have not yet engaged lawyers and tax advisors for fund formation so hoping that someone can share links. I am seeing conflicting reports...
Are the audit and tax fees reasonable for a first-time $10M fund?
I thought I saw a matrix showing a list of expenses and whether the Fund Manager Fund or ManCo can expense it... Anyone know where I can find that?
I would appreciate some guidance on warehousing from you guys: I invested $500K over two years in a collection of micro-services designed to be a foundational shared resource for my portfolio companies. This is one crucial vertical in my strategy ...
Do the expenses for the alignment agreement & stewardship agreement fall in the hands of the founding partners or can they be claimed as fund admin/org expenses?
Where should we bucket expenses (travel+frugal entertainment) associated with attending port co board meetings? Management Co Expenses or can that be pushed to Fund Expenses?