Hope W.

Why Do Companies Choose to Incorporate in Delaware? Delaware is a popular choice for corporations to incorporate for several key reasons: Pro-Management Environment: Delaware has historically offered favorable franchise tax rules and policies that are supportive of management. Board Member Protection: The state provides strong protections for board members against derivative suits, which are lawsuits initiated by shareholders on behalf of the corporation. Minority Shareholder Protection: Delaware offers less protection for minority shareholders than other states. Hostile Takeover Defense: There is limited statutory protection against hostile takeovers in Delaware, which can be advantageous for management. While these factors are crucial for large corporations, they have minimal impact before a company is ready for an IPO or later rounds of equity financing. Understanding Derivative Lawsuits Derivative lawsuits are initiated by shareholders on behalf of the corporation, targeting board members individually for any harm caused to the corporation. This is distinct from liability for corporate debts, which the corporate entity typically shields against. In response to directors being sued for substantial sums related to mergers and acquisitions, Delaware was the first state to introduce indemnification statutes, which now exist in all 50 states. Directors are indemnified for lawsuits if they exercise reasonable care in their duties and avoid intentional or reckless harm to the corporation. Corporate charters in both Delaware and California can cover legal expenses and judgments with some exceptions. Practical Benefits of Incorporating in Delaware Robust Case Law: Delaware has developed an extensive body of case law on corporate issues, providing predictability in legal outcomes. Familiar Transactional Documents: Corporate transactions frequently executed under Delaware law mean that transaction documents are more familiar to investors and their counsel. VC Familiarity: Venture capital partners, often serving on portfolio company boards, are well-versed in Delaware's director liability laws. Additionally, Delaware corporate law allows all classes of stock to vote together on significant corporate changes like mergers, acquisitions, or IPOs. This is preferred by investors as it prevents a single class (such as common stock held by founders and employees) from blocking such decisions. For companies aiming for a venture scale with potential IPOs, Delaware incorporation is advantageous. Companies can also reincorporate in Delaware later through conversion, asset transfer, or merging a California corporation into a Delaware corporation, though this incurs legal expenses. If a company plans to pursue a venture scale model, has connections to other states, expects early investments to trigger federal securities laws, or anticipates dealing with institutional investors soon, it is wise to consider incorporating in Delaware from the start.

IRS Strategic Operating Plan update released: a) better service b) more audits and c) more funding (60% up in proposed budget) https://lnkd.in/dcdGriqz

Carla McCall: Find Your Authentic Leadership Style | Gear Up For Growth: "Just having a title or a position doesn’t make you a leader. You have to earn the trust and respect of the team that you're leading." Gear Up for Growth With Jean Caragher For CPA Trendlines   In the latest episode of Gear Up for Growth, Carla McCall, managing partner of AAF CPAs and chair of the AICPA, shares valuable insights into leadership transitions within CPA firms. As the industry faces a generational shift—with 75% of current CPAs expected to retire in the next 15 years—McCall's experience highlights the importance of planning for the next wave of firm leadership.   Gear Up for Growth spotlights the best strategies for smart and effficient growth in today's competitive landscape. More Gear Up for Growth every Friday here.| More Capstone Conversations with Jean Caragher every Monday | More Jean Caragher here | Get her best-selling handbook, The 90-Day Marketing Plan for CPA Firms, here | More CPA Trendlines videos and podcasts here   During the conversation, McCall recounts her journey, beginning when she joined AAF in 1995, then becoming a partner at AAF in 2003, and eventually becoming a co-managing partner in 2011. She emphasizes the importance of having a firm-wide succession mindset, where every leader is responsible for mentoring and developing their potential successor. One key factor in AAF’s smooth transition was a structured Managing Partner in Training (MPIT) program designed to prepare future leaders for the complexities of running a CPA firm. McCall reflects on her challenges in building trust and influence as a new leader. She stresses that leadership goes beyond simply holding a title—it requires earning respect through authenticity, feedback, and focusing on helping others succeed. Her journey to sole managing partner in 2020 demonstrated the power of aligning leadership around vision and strategy while empowering operational leaders to make day-to-day decisions.   McCall's advice to CPA firm leaders? Start succession planning early, foster a culture of candid feedback, and align your team around a shared vision. With the right mindset and preparation, transitioning leadership can lead to a stronger, more resilient firm. http://dlvr.it/TFyHsZ

Carla McCall: Find Your Authentic Leadership Style | Gear Up For Growth: "Just having a title or a position doesn’t make you a leader. You have to earn the trust and respect of the team that you're leading." Gear Up for Growth With Jean Caragher For CPA Trendlines   In the latest episode of Gear Up for Growth, Carla McCall, managing partner of AAF CPAs and chair of the AICPA, shares valuable insights into leadership transitions within CPA firms. As the industry faces a generational shift—with 75% of current CPAs expected to retire in the next 15 years—McCall's experience highlights the importance of planning for the next wave of firm leadership.   Gear Up for Growth spotlights the best strategies for smart and effficient growth in today's competitive landscape. More Gear Up for Growth every Friday here.| More Capstone Conversations with Jean Caragher every Monday | More Jean Caragher here | Get her best-selling handbook, The 90-Day Marketing Plan for CPA Firms, here | More CPA Trendlines videos and podcasts here   During the conversation, McCall recounts her journey, beginning when she joined AAF in 1995, then becoming a partner at AAF in 2003, and eventually becoming a co-managing partner in 2011. She emphasizes the importance of having a firm-wide succession mindset, where every leader is responsible for mentoring and developing their potential successor. One key factor in AAF’s smooth transition was a structured Managing Partner in Training (MPIT) program designed to prepare future leaders for the complexities of running a CPA firm. McCall reflects on her challenges in building trust and influence as a new leader. She stresses that leadership goes beyond simply holding a title—it requires earning respect through authenticity, feedback, and focusing on helping others succeed. Her journey to sole managing partner in 2020 demonstrated the power of aligning leadership around vision and strategy while empowering operational leaders to make day-to-day decisions.   McCall's advice to CPA firm leaders? Start succession planning early, foster a culture of candid feedback, and align your team around a shared vision. With the right mindset and preparation, transitioning leadership can lead to a stronger, more resilient firm. http://dlvr.it/TFyHt2

Carla McCall: Find Your Authentic Leadership Style | Gear Up For Growth: "Just having a title or a position doesn’t make you a leader. You have to earn the trust and respect of the team that you're leading." Gear Up for Growth With Jean Caragher For CPA Trendlines   In the latest episode of Gear Up for Growth, Carla McCall, managing partner of AAF CPAs and chair of the AICPA, shares valuable insights into leadership transitions within CPA firms. As the industry faces a generational shift—with 75% of current CPAs expected to retire in the next 15 years—McCall's experience highlights the importance of planning for the next wave of firm leadership.   Gear Up for Growth spotlights the best strategies for smart and effficient growth in today's competitive landscape. More Gear Up for Growth every Friday here.| More Capstone Conversations with Jean Caragher every Monday | More Jean Caragher here | Get her best-selling handbook, The 90-Day Marketing Plan for CPA Firms, here | More CPA Trendlines videos and podcasts here   During the conversation, McCall recounts her journey, beginning when she joined AAF in 1995, then becoming a partner at AAF in 2003, and eventually becoming a co-managing partner in 2011. She emphasizes the importance of having a firm-wide succession mindset, where every leader is responsible for mentoring and developing their potential successor. One key factor in AAF’s smooth transition was a structured Managing Partner in Training (MPIT) program designed to prepare future leaders for the complexities of running a CPA firm. McCall reflects on her challenges in building trust and influence as a new leader. She stresses that leadership goes beyond simply holding a title—it requires earning respect through authenticity, feedback, and focusing on helping others succeed. Her journey to sole managing partner in 2020 demonstrated the power of aligning leadership around vision and strategy while empowering operational leaders to make day-to-day decisions.   McCall's advice to CPA firm leaders? Start succession planning early, foster a culture of candid feedback, and align your team around a shared vision. With the right mindset and preparation, transitioning leadership can lead to a stronger, more resilient firm. http://dlvr.it/TFyHsj