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Do Conflicts Of Interest Require Outside Boards? Yes. Bsps? Maybe., Usha Rodrigues
Do Conflicts Of Interest Require Outside Boards? Yes. Bsps? Maybe., Usha Rodrigues
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From the Symposium: Outsourcing the Board: How Board Service Providers Can Improve Corporate Governance
Boards of directors are curious creatures. The law generally requires corporations to have them—indeed, they are the focus of the corporate law we teach in Business Associations in U.S. law schools. The corporation is managed by directors or under their direction; directors hire and fire officers; directors are necessary for fundamental transactions.
But the reason why corporations have directors is not entirely clear. In the prototypical privately held corporation, the family firm, the same individuals serve both as directors and officers. The CEO (better known as …
Explaining Choice-Of-Entity Decisions By Silicon Valley Start-Ups, Gregg Polsky
Explaining Choice-Of-Entity Decisions By Silicon Valley Start-Ups, Gregg Polsky
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Perhaps the most fundamental role of a business tax advisor is to recommend the optimal entity choice for nascent business enterprises. Nevertheless, even in 2018, the choice-of-entity analysis remains highly muddled. Most tax practitioners across the United States consistently recommend flow-through entities, such as LLCs and S corporations, to their clients. In contrast, a discrete group of highly sophisticated tax professionals, those who advise start-ups in Silicon Valley and other hotbeds of start-up activity, prefer C corporations.
Prior commentary has described and tried to explain this paradox without finding an adequate explanation. These commentators have noted a host of superficially …