Equity Forward Agreement In Philadelphia
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The Economy League of Greater Philadelphia's PAGE (Philadelphia Anchors for Growth & Equity) program leverages institutional purchasing power to help local and diverse firms create jobs and generational wealth in underserved communities.
A company provides you with a lump sum in exchange for partial ownership of your home, and/or a share of its future appreciation. You don't make monthly repayments of principal or interest; instead, you settle up when you sell the home or at the end of a multi-year agreement period (typically between 10 and 30 years).
Draft the equity agreement, detailing the company's capital structure, the number of shares to be offered, the rights of the shareholders, and other details. Consult legal and financial advisors to ensure that the equity agreement is in line with all applicable laws and regulations.
The Net Profits Tax (NPT) is imposed on the net profits from the operation of a trade, business, profession, enterprise, or other activity by: Philadelphia residents, even if their business is conducted outside of Philadelphia. Non-residents who conduct business in Philadelphia.
A business is considered to have nexus in Philadelphia and is subject to BIRT if it has generated at least $100,000 in Philadelphia gross receipts during any twelve (12) month period ending in the current year. Public Law 86-272 continues to apply for the tax on Net Income.
Every individual, partnership, association, limited liability company (LLC), and corporation engaged in a business, profession, or other activity for profit within the City of Philadelphia must file a Business Income & Receipts Tax (BIRT) return.
Every resident, part-year resident or nonresident individual must file a Pennsylvania Income Tax Return (PA-40) when he or she realizes income generating $1 or more in tax, even if no tax is due (e.g., when an employee receives compensation where tax is withheld).
NPT applies to both Philadelphia residents, even if their business is conducted outside of Philadelphia, and non-residents who conduct business in Philadelphia. Key Considerations: Taxable Income Calculation: NPT is levied on the net profits derived from business activities within the city.
All Philadelphia residents, even those who live in the City a portion of the calendar year, are required to file the School Income Tax return and failure to do so can subject one to substantial fines and other penalties.
