If you own a company and the company pays home office rent, does the company have to 1099 the owner?
The company would need to send the owner a 1099-misc for any rents paid to them if the owner is not incorporated. For example, if the owner is an individual, an LLC, or a partnership, they will need to send them a 1099 for the amount of rent paid to them as it is income. If the owner is an incorporated company, they do not need to do this. Regardless of the owner, the company will report it as rental expense on their tax return
Since you are asking how the income is classified on a personal tax return, I assume its an individual you are asking about. They would report it on Schedule C of the 1040 as rent income.
I hope that makes sense. Good luck.
How does the founder of a successful company instantly become super rich?
The founder of a successful company become super rich on paper but not on cash flow. Now, if the founder sells additional stock to other shareholder, then you can actually take some of the money for personal use. Most of the time, business people try to increase the value of their company's stock by improving the company's performance (profitability). Once you take the company public, you can make a lot of money. When you create a company, you can get a significant number of shares approved, and later you can sell them via an IPO (initial public offering).
What happens to employees when a small company is bought-out by a much larger company?
The least that can happen is that the bigger company will simply start to receive the revenues generated by the company they've purchased. That and maybe the sign on the building and the letterhead logos would change.
The most that can happen is the big company acquires patents, production or service techniques, capital equipment used for production or services, and they let all the small company's employees go. This can happen when a big company is simply trying to get rid of a competitor, or attempting to "purchase" market share.
Generally, it's somewhere in the middle - after all, the employees of the smaller company know how to do the work, so why upset the process?
What happens to a company's stock options when the company is acquired by either a private or public company?
For exchange traded options the contracts are adjusted to make the underlying be the same thing the owner of 100 shares of the stock received.
If the shares were bought out for $87 per share your call option would be converted to make the underlying $8,700. This means if your call had a strike price above $87 it would effectively become worthless, but if it had a strke price below $87 it would effectively become worth a fixed amount. If the stirke price was $65 it would be worth $2,200 but you would have to exercise the option to receive the money.
It is correct if the owner of 100 shares of the acquired company received shares of the acquiring company.
If the buyout gave the owners of the acquired company 0.48 shares of the new company for each share of the old company in the buyout, the underlying for the option would be adjusted from 100 shares of the acquired company to 48 shares of the acquiring company.
For examples of contract adjustments from past acquisitions, see