The Ins and Outs of Qualified Small Business Stock

By: Steve Masur In simple terms, a qualified small business stock (QSBS) is the stock or share of a qualified small business. It is defined as a domestic and active C-corporation whose gross assets do not exceed $50 million as of the date the stock was issued and immediately after issuance. Section 1202 of the Internal […]

Examining the SAFE Banking Act’s Potential Impact on the Cannabis Industry

By: Jon Avidor and Liam McKillop Last September, the Secure and Fair Enforcement Banking Act of 2019 (the “SAFE Banking Act”) garnered enough votes in the House of Representatives to pass through to the Senate. This was an important first step for a bill that cannabis-related businesses are relying on to gain access to basic financial services […]

Am I More of a C-Corp or an S-Corp?

By: Steve Masur When forming a corporation, an important decision to consider is whether to form as a default C-Corporation (“C-Corp”) or elect for the corporation to be an S-Corporation (“S-Corp”). This distinction can carry major implications for the corporation, such as the way the it will be taxed or the rights of its shareholders.  […]

Crypto Mom’s SEC Safe Harbor Proposal for New Token Offerings

By: Steven Masur and Cameron Ashby During the 4th International Blockchain Congress in Chicago, Hester Pierce, Commissioner for the U.S. Securities and Exchange Commission (SEC) (aka, the “Crypto Mom”), announced the “Token Safe Harbor Proposal,” or the “Proposed Securities Act Rule 195 – Time-limited exemption for tokens,” (“Safe Harbor”). Up until now, token projects have […]

COVID-19 and the Force Majeure Clause

By: Steve Masur and Ilana Faibish Does COVID-19 constitute a force majeure event under my contract? The COVID-19 crisis has resulted in significant disruptions in most industries. A great many companies are struggling to meet their obligations under their commercial contracts. Now is certainly a good time for companies to dig up their commercial agreements […]

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Secretary of State Office Deadlines Update

By: Steven Masur As we navigate these challenging times, we remain focused on supporting you in the weeks and months ahead. To that end, we have been monitoring Secretary of State offices for updates on filing deadlines and requirements. Here is an update with respect to Delaware, New York, California, Colorado, Nevada, Washington, and Wyoming. […]