Wiley Financial Services

  409A is an independent process that is performed during startup valuation. According to IRS rules, 409A valuation must be done by a third-party professional. It is often conducted at the fair market value of a business. During a startup valuation, 409A sets the appraisal price for contractors, advisors, employees and any other entity in a business. 409A startup valuation is performed at the beginning of new financing of investment. Before the introduction of 409A, it wasn’t easy to value a startup. The framework to strike a price for various options was limited. How Does 409A Protect a Startup and Employees? It guarantees fair market value for option pricing It protects the employees against any legal implication It protects from audit scrutiny when reviewing business valuation ...

  COVID-19 pandemic has impacted more on the rise in the concept of remote work or Working From Home (WFH). Due to the high risk of contracting the disease, working from home has become necessary. The situation has brought comfort to employees working from home. However, there have been challenges in transacting businesses. Currently, there are numerous difficulties in transacting mergers and acquisitions and the valuation of various businesses. Impacts of Remote Work Working Models The current situation has forced businesses to introduce new working models. The concept of working from home is the new norm. Working from home ensures that the workforce talent is retained while the business maintains the previous productivity from the old model. Depending on the scope of work, most companies have introduced various models of working remotely. Employees can work fully from home or have hybrid models where they alternate from working remotely and appearing in the place of w...

  How to File to Get the Most PPP Money? If you are looking at how to file to get the most PPP money between  filing as a Sole Prop vs. an S-Corp, C-Corp, B-Corp, LLC, or Nonprofit, I can help. The simple answer is it does not matter. All entity types are going to give you 2.5 times the amount of your monthly payroll. If you can prove actual payroll through showing that you paid payroll taxes last year, then I suggest that you use those numbers. They will then give you 2.5 times the amount of your monthly payroll in order to keep you alive.  What to Do if You Can’t Prove Payroll Now, if you can’t prove that, file as a sole proprietor and take your owner’s draw. If you don’t know what an owner’s draw is, I can explain. It’s when you, as the owner and sole proprietor, draw a certain amount of money from your company each month to pay yourself. T...

  PPP Applications Round 2 Today, I’m going to be talking about the very  confusing second round of PPP applications and the benefit of secondary lenders. Let’s discuss who qualifies, who doesn’t, and what it all means.  The first round of PPP was open to everybody.  This means large corporations all the way down to the little guy or a Sole Proprietor. What came about that was, the big guys got most of the money. The little guys got very little, if any, to survive their businesses through the last year of the pandemic. Who is it For? So the second round of PPP was to create the ability for smaller  businesses, less than 300 employees, to be able to participate and get money from these programs. But what ...