All posts tagged seattle startup lawyer

New Internet Domains Are Coming … What You Should Do

by Joe Wallin on July 8, 2011 in Business/Corporate Law with 1 Comment

By Bob Corn-Revere, Burt Braverman, and David M. Silverman

The Internet Corporation for Assigned Names and Numbers (ICANN), the entity responsible for management of the Internet domain name system (DNS), has approved major changes in the system of top-level domains (TLDs) that will lead to the approval of potentially thousands of new domains. (Please see our June 22, 2011, Advisory.) ICANN has also given final approval to a sponsored domain for the adult entertainment industry, .xxx.

Historically, only a limited number of general use TLDs have been used across the Web, the best known of which are .com, .net, and .org. Country code TLDs also exist, many of which also have been used generally without regard to the nationality of the registrant (e.g., .tv). As discussed in our June Advisory, ICANN’s action will permit new applicants to propose almost any name or brand to become a top-level domain (e.g., .google or .pizza), and it will begin taking applications in January 2012. The sponsored .xxx domain will open this fall, but use of the .xxx TLD is limited to members of the “Sponsored Community” who provide adult-oriented content and related services.1  Continue reading →

Summertime Blues: Limits on Using Unpaid Student Interns and Volunteers

by Joe Wallin on June 11, 2011 in Business/Corporate Law with No comments
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By Gregory S. Fisher, John C. Post, and Mary E. Drobka

Summer is the time of year when businesses often use student interns. Many businesses erroneously assume that student interns are not employees, particularly if they “volunteer” or if they are earning college credit for work performed. While it is true that college students under certain circumstances may be classified correctly as non-employees, not all qualify.

This advisory highlights key issues and best practices related to using student interns and the limits on using volunteers. Child labor or other student-learner subjects are beyond the scope of this brief summary. Continue reading →

Startup America Suggestion of the Day: Extend the Rollover Period in Section 1045 (Installment 9)

by Joe Wallin on February 15, 2011 in Federal Law & Regulation with No comments
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I can’t take credit for today’s suggestion–I heard it from Tom Alberg at the Northwest Regional Angel Capital Association conference. Tom’s idea is worth advocating for.

Internal Revenue Code Section 1045 allows taxpayers (other than corporations) that have held qualified small business stock for more than 6 months to defer the gain on the sale of such stock if they reinvest the proceeds of the sale in qualified small business stock within 60 days of the sale. (Think of Section 1045 as the equivalent for startups to Section 1031 for real estate.) This is a very beneficial provision, because you have to meet a 5 year holding period to benefit from the Section 1202 exclusion from income.

The trouble with Section 1045 is that 60 days is a very short period of time in which to identify and invest in another company. It typically takes investors several months to identify and make investments in qualified small businesses.

For the benefit of startups, the Startup America Initiative team ought to advocate that this 60 day period be extended to something on the order of 1 year, or perhaps 270 days, to allow investors time to find investments in an orderly manner and be able to take advantage of Section 1045.

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