Tag Archives: Taxes
Portfolio Churn — Enemy of Investment Returns
Churn destroys investment return. Strangely, traditional private equity builds itself to churn. Churn reduces investment returns for several reasons such as transaction costs, business disruption, and the difference in tax rates between ordinary income and capital gains. This last difference is the easiest to quantify as… Continue reading
Enlightenment about Investor Alignment
Obtaining alignment among the various parts of a company, particularly between company founders and investors, is a never-ending topic. Two items have caught my eye this month that relate to this issue and may help spread some enlightened thinking about investor alignment. First, Fred Wilson, a… Continue reading
Construct a Perfect Business, Financially Speaking
Designing the financial model (in a real-world sense, not a spreadsheet sense) of your business is worth every minute that you can dedicate to it. We should craft the financial model of our business with as much care as a fine architect and craftsman would… Continue reading
C Corporation Business Owners are at Risk of Losing Millions
I lost huge money early in my career in not electing to switch my company from a Corporation to an S Corporation. I don’t want you to make the same mistake. Each year, the owners of C Corporations have an opportunity to switch their tax… Continue reading
Tax-Free Entities Supported by Greybull Stewardship
Are you still paying two-levels of tax on the income from your business? If your company is a profitable, cash-generating business, it is a large advantage to be organized as a flow-through entity for tax purposes (S Corporation or Limited Liability Company). As most of… Continue reading
Sign Up
RSS Feed