Partnership Interest for Services (2023)
Sweat equity. A popularized term and common arrangement where in the formation of a partnership or LLC someone will contribute and trade services for equity in the partnership. Often, one partner will provide the starting capital and the other partner some of the skills for the operation of the business. This is similar to when startups grant equity to employees as incentives. But what is the tax impact on the person providing services?
What Kind of Business Entity Do I Need in Utah? (2023)
Choosing an entity that fits your business is important. I once asked someone why they used a certain entity type when starting a business, and they said it was because it is what someone else in their industry said to do. While relying on the advice of someone in the same industry may or may not work well, there could be a better entity type that fits the goals and management of the business.