This program will cover the substantive tax law and discuss commonly-encountered tax issues implicated by the use of SAFEs
Learning Objectives
SAFEs, or Simple Agreements for Future Equity, which were introduced byY-Combinator in 2013, are a popular investment instrument in early-stagestartup financings. Y-Combinator intended for a SAFE to be a simpleinvestment instrument requiring minimum negotiation. However, from a taxperspective, the treatment of SAFEs is not so simple. This program willprovide an overview of the various forms of SAFEs and their tax treatment.Although SAFEs were intended for use by C corporations, we have seenthem used by both LLCs and S corporations which implicate a number ofcomplicated and troublesome tax issues.
Major Topics
This program will cover the substantive tax law and discuss commonly-encountered tax issues implicated by the use of SAFEs
