Question: Two founders are launching a biotech startup. They expect operating losses for the first 3 years, followed by rapid growth. Their goals are: To deduct
Two founders are launching a biotech startup. They expect operating losses for the first years, followed by rapid growth. Their goals are:
To deduct early losses against other income
To attract venture capital within years
To eventually exit via an IPO or acquisition
To retain flexibility in profitloss allocation until investment comes in
Which of the following best reflects the optimal sequence of entity choices for minimizing taxes and maximizing strategic value?
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