Employee or Consultant??? Insights on compensation, regulations & benefits

4:30 networking! Information Sessions at 5pm.

Business owner?... About to start a business?...Employee or Consultant?...choose which topic best fits your needs; they run concurrently starting at 5:00:

Track 1: Stock-based Compensation / Equity Incentives:
Are you a working founder or member of start-up wondering about stock-based compensation? Allow Jonathan Cerrito with Blitman & King (http://bklawyers.com) help you to understand the ins and outs of negotiating an entrance into and exit from an employment relationship including employment agreements, retention agreements and change-in-control agreements?

For example, many start-up companies use equity incentives to compensate, recruit and retain executives and employees. The goal of stock-based compensation is to properly align the interests of employees and stockholders by providing employees incentive to contribute to the long-term growth of a company. Stock-compensation has the added benefit of not hamstringing a start-up that has limited cash resources.

But what form of stock compensation are you receiving and what are the associated rights? Is it restricted stock, stock options, stock appreciation rights or profits interest (for partnerships and LLCs taxed as partnerships only). What are the pros and cons of each form?

What is the vehicle through such stock-compensation will be delivered—a formal plan, an individual’s employment contract or both? Are non-employee service providers, such as outside directors, going to receive stock-based compensation?
Other considerations include the vesting schedules and associated tax consequences, changes in control (through a sale, merger or acquisition of the start-up), limited windows to exercise stock options following a termination, repurchase rights, right of first refusal and on we go.

- OR-

Track 2: Consultant? Independent Contractor? Employee? Which do you need? Which are you?:
Kathy Barany, entrepreneur and owner of Strategic Management Solutions (http://www.sms-hr.com) will enlighten you as to the difference between a consultant, independent contractor, and employee and the liability issues if an employer misclassifies who they “hire”. The financial burden to your company could be huge, and it is easy to fix. Kathy will give examples of businesses that made the wrong decision – Microsoft was one that paid big bucks for “hiring” consultants who should have been paid as employees. We will also discuss what benefits and taxes must be paid for each category. Whether you are a business owner or someone thinking of becoming a consultant, this session will prove very beneficial and it may even prove to be a money saver for your business!

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  • Chuck S.

    Good overview of equity compensation.

    November 7, 2012

  • Lynn H.

    Jonathan Cerrito with Blitman and King and Kathy Barany owner of Strategic Management Solutions were wonderful; shared a wealth of information on their specific topics.

    November 7, 2012

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