| by Bill Taylor,
discount hotels in Siofok Southwestern Iowa SBDC, Creston, IA Thinking about taking stock/equity in a company instead of cash for services you or your company has performed. If so, here are a few guidelines to consider.
- Taxes
If your company is a C corporation, you risk double taxation on the appreciated stock held upon the liquidation of your company. You may want to look into setting up an LLC (Limited Liability Company) or an S corporation for your stock/equity transactions.
- Risk
Valencia Hoteles centrales You should evaluate the risk involved in taking equity the same as you would any investment. You should determine whether you are getting a fair deal.
- Cash Flow
Decide how much cash per project you are willing to give up for the sake of taking stock/equity. Do you just want to take enough cash to break even? Does the break even number include your salary? What will taking equity do to your cash flow?
- What Ifs
Consider who else will be affected if your company takes equity in its customers. What if you take equity in a high-tech startup and then one of its competitor seeks your services. Is that a conflict of interest? What if you take shares in some of your customers and don't in others. Will they feel slighted? The only thing that is certain is that these equity for services transactions are case by case deals. What works for one company may not work for another. > See also: Accounting & Finance | 
