Congress is about to come back into session. It is going to have a lot on its plate, and it is going to have a compressed schedule. However, Congress has a chance to make a big difference in the life of startups in this short span of time.
Here is what I recommend as a Seattle startup company lawyer:
- Repeal Section 413 of the Dodd-Frank Act. This is the section that changes the definition of “accredited investor” and makes it more difficult to qualify as an accredited investor. Why would Congress want to make it more difficult to invest in startups? Startups are the job creators in this country, but they need capital to create those jobs. Congress should make it easier for people to invest in these companies, not harder.
- Make it easier for startups to raise money by lowering the thresholds for “accredited investors” and repealing the prohibition against startups advertising for money.
- Make investments in startups immediately tax creditable to the extent the funds are used to employ people.
- Repeal Section 409A as it applies to startups. This section of the Internal Revenue Code imposes an unnecessary burden on startups.
- Repeal the new 1099 rules included in the health care reform bill. These new rules impose an undue burden on companies.
Just some thoughts for Congress as it returns to business.