Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: November 20, 2013
The Firm
201-896-4100 info@sh-law.comTwitter recently forged a unique agreement with San Francisco, whereby the company would keep its headquarters in the city in exchange for lucrative payroll tax breaks. Currently, San Francisco is the only city in California that collects payroll taxes, according to the San Francisco Gate. An analysis conducted by certified public accountant Jim McHale – in collaboration with the Chronicle – revealed that San Francisco stands to lose roughly $34 million in revenue from stock grants alone that may be exercised and sold after the company’s IPO.
Currently, the rising stock indicates that this scenario may become a reality, an ABC News report found.
“About 82 million shares of Twitter have exchanged hands already,” the news source noted. “To put that in perspective, Twitter only sold 70 million shares in its IPO. One way to think about it, every share issued in Twitter’s IPO has been traded more than once, and the session isn’t half over yet.”
Additionally, the city noted that that payroll tax law agreement struck with Twitter may cost them about $22 million over a six-year period without the IPO – or $56 million overall – leaving many analysts to wonder how revenue streams will be affected over the next several years.
Despite the potential losses, the San Francisco claims that it would have forfeited more revenue in the long run if the company had decided to relocate its headquarters to Palo Alto, Calif. Although the city stands to gain from keeping the company in its cross hairs, not all are on board with the deal.
“As technology companies like Twitter and Facebook seek to turn ideas into profits by going public and selling stock, they are also exploiting taxpayer subsidies for executive pay to avoid paying any taxes on billions of dollars of earnings,” Think Progress columnist Alan Pyke wrote.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!