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PRIVATE-EQUITY We bought the French company out of the Paris bankruptcy courts and were
able to write-off our entire investment as restructuring costs. A client
of Green & Company had been the CEO and majority owner before the
bankruptcy too. The below content has been on our site for years and we are updating it soon, as part of our GreenEnergyActiveInvestor.com initiative. Using our strategy Green Active Investors, you can raise new money and your investors make money from day one with tax benefits
Many Startups are being cut-off by their venture capitalists As reported by the Wall Street Journal and many other publications in May, 2000, many dot.com startups are facing bankruptcy. Their venture capitalists are withholding additional rounds of finance as IPO market opportunities disappear. Venture capitalists funded expensive startup business plans in a land grab game of who can be the biggest and best on the Internet first. The more money spent on advertising, systems, overhead and human resources the better, because the goal was winning your space. If you were successful in winning eyeballs, press and buzz, then an IPO could be arranged in that frothy market and the venture capitalist could be rewarded well. If a few startups crashed and burned, that was ok for them because as long as 1 in 5 or 10 made it, they would do very well for their venture capital efforts. Well now the frothy market has disappeared and venture capitalists now figure the odds for success are much harder. The result is to pull the plug on many startups. We believe there needs to be changes in how things are done going forward. Sorry to say, but we never believed in this land grab game for the big pay-off. Yes it worked gloriously for the last few years but we don't think it will work over the next few years. We have operated an Internet based business in our space (Trader Tax market) for the past few years and operate at cash net income levels that any business would desire (well over 50%). Our views on operations and efficiencies is not the focus of this page
at this time. They are covered in our new "Green & Company
ActiveInvestors Tax and Business Guide"© ActiveInvestors is the next generation way to finance startups ActiveInvestors is the next generation way to finance startups and to help startup entrepreneurs reach their promised land. ActiveInvestors provide startups with fresh rounds of cash capital, additional or replacement human resources (from their own home offices with no new overhead for the startups), and reorganization techniques to avoid bankruptcy. ActiveInvestors invest time, money and expenses into your business. On the upside the Investors receive good equity returns and on the downside they receive significant tax benefits. In many worst case scenarios, some ActiveInvestors are prevented from losing any cash investment and they only risk their time and effort. Many proven professionals and executives in the Old World economy, law, accounting, advertising, promotion, sales and other have money and a great job but no means to execute their dreams. These ActiveInvestors have money and desire to join your team on a part-time basis. With our ActiveInvestor structure preventing them from losing money (tax benefits), they have nothing to loose and everything to gain. These ActiveInvestors can spend their nights and weekends working for your company for no salary from their own home office overheads. They provide you with a new round of cash equity and are at your beck and call for help. Tax advantages are the key to making ActiveInvestors work well for both you and the investor. The tax advantages is the most important component of this program and the element that we are most experienced in as a tax and accounting firm (made up of CPAs and tax attorneys). ActiveInvestors are "active" not "passive" in your company's operations. Your company structure is changed to be a "flow through entity" like an LLC or S-Corp. ActiveInvestors then receive a K-1 for their share of your company's tax losses. ActiveInvestors have "tax basis" for their cash invested plus their home office and other expenses committed as an active participant. Congress changed the US tax laws in 1986, closing the loopholes that allowed the earlier proliferation of "tax shelters." Congress created the new "passive loss" and "at risk" rules, which together took away the guts of tax shelters. Investors were no longer allowed to take losses when they were "passive" (real estate tax shelters, oil & gas deals) and when they were not at risk for the company's debt (movie tax shelters). The tax strategies are somewhat complicated and in each case we customize
them for each startups situation (healthy company, cash starved company,
company facing bankruptcy, company in bankruptcy, company out of bankruptcy). Green & Company created
ActiveInvestors in 1987 and used it successfully to save a company
and make money for ActiveInvestors Services we offer We also offer our entire line of professional tax, accounting and legal services to consult you on ActiveInvestors. We can provide you with the full tax structure details, materials to present potential ActiveInvestors, tax opinions on the tax benefits and structure, advise you on how to proceed, execute the legal paperwork, change your company entity structure if need be, prepare your tax returns and K-1s for ActiveInvestors, consult you on how to handle the tax accounting related to the ActiveInvestors cost basis for cash and non-reimbursed expenses, and all the other related needs. To get started, we suggest you purchase a consultation with Robert A. Green, CPA. Click here. If you have any questions about our services for raising money,
please e-mail
us
at info@greencompany.com or call
us. |
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