Complimentary for Members

On-Demand Self-Study


SAFEs: Not So Simple! Tech Session - 06/01/2024

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 negot

On-Demand Self-Study

Learning Objectives

  • Upon completion of this course, you'll be able to:
  • Identify the different forms of SAFEs and understand their intended structure and function, particularly in relation to C corporations.
  • Examine the complex tax implications that arise when SAFEs are used by LLCs and S corporations, including potential compliance challenges.
  • Evaluate strategies for navigating the tax treatment of SAFEs in non-traditional entity contexts to mitigate risk and ensure proper reporting.

Major Topics

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.

CPE Credits Available

0
Taxation (NYSED) - NYSED

Things to Know About This Course

Course Level

  • Basic

Professional Area of Focus

  • Taxation (NYSED)

Prerequisites

None

Advanced Preparation

None

Intended Audience

Tax professionals (accountants and lawyers)

Provider

Foundation for Accounting Education

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