A Section 83(b) election is a short letter you send to the IRS to clarify how you want to be taxed on your equity. Learn how it can affect your tax bill.
In a liquidity event, a company’s founders and investors turn their illiquid assets into liquid assets. Examples include IPOs and acquisitions. Learn more.
Most equity grants require a time-based vesting period or set of vesting milestones in order for the employee to become a full owner of the award. Read on.
A stock option is a contract that allows a person to purchase a number of shares of stock at a fixed price. Learn how employee stock options work.
Startup stock options work similarly to employee stock options at other types of companies. But startups move quickly, and so can the value of your options.
Exercising stock options means buying shares of the issuer’s common stock at the price set by the option grant agreement. Learn when and how to exercise.
A stock option’s strike price is determined by the fair market value of the underlying stock. Here’s how to find FMV and set the right strike price.
The Alternative Minimum Tax (AMT) exists parallel to the regular income tax system. Taxpayers who earn above a certain amount may need to pay it. Read more.
Learn about the difference between RSUs and stock options.
The fair market value of a private company’s stock is how much one share of that stock would be worth on the open market. Learn more about how FMV works.
In choosing whether or when to exercise stock options, tax implications play a role. But different types of stock options are taxed differently. Read more.
A four-year vesting schedule with a one-year cliff is the most common vesting schedule, but other options may make sense for your startup. Learn more.
Restricted Stock Units, or RSUs, are taxed at ordinary income tax rates upon vesting. Capital gains taxes may also apply at the time the stock is sold.
The ISO $100K limit prevents employees from taking too much advantage of the tax benefits associated with incentive stock options (ISOs). Learn more.
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