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Navigating Tax Obligations for Startups: What You Need to Know

Startup Blogpost

Discover how to tackle tax obligations effectively and learn from real challenges they’ve faced. Navigating Tax Obligations for Startups: What You Need to Know Navigating the complex landscape of startup taxation can be daunting, but with insights from CEOs and financial experts, startups can stay compliant and even save on taxes.

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Beware the Tax Consequences of the Convertible Note

Angel Capital Association

The note is convertible into the next round of stock at the time that stock is issued, usually at a discount from the price of the note. Under IRS Section 1273(a), the annual interest accrual may be treated as “original issue discount” or “OID.” Convertible notes are a popular instrument for raising early-stage capital.