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Startup Tax Tips & Triage – Convertible Debt

Stephen Day Corporate Tax, Tax Planning, Tax Services, Tax Strategy

Investor: I’m in! But let’s do it with convertible debt. Startup CEO: But we get the money, right? Investor: Of course, this is just a way to manage risk and keep things flexible. Startup CEO: Cool! When do we get the money? VPTax: Not so fast. Although convertible debt is on occasion a preferred way to secure outside investment there …