Harness Wealth

JANUARY 24, 2023

Who knows, you might even find a more tax-friendly destination along the way. However, it is important to remember that while residing in any of these states, individuals will still be obligated to pay federal taxes. Consult with a Harness Tax Advisor to best determine how state and local tax laws may impact your specific situation.

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Startup Tax Planning Taxes Planning 52

Harness Wealth

FEBRUARY 7, 2023

If you’re a startup employee, chances are you earn stock options or grants as part of your compensation package. Startups typically follow a three to four year vesting schedule, with shares gradually being distributed monthly after one full year on the job (that one-year mark is known as the cliff).

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Startup Taxes Tax Planning Commission 52

Harness Wealth

APRIL 17, 2023

Equity compensation is a popular strategy used by startups to attract and retain top talent, and it can sometimes result in significant financial rewards for founders and employees alike. However, realizing the value of equity can be rare, particularly when the company has no immediate plans to go public.

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Startup Taxes Risk Tolerance Consulting 52

Harness Wealth

MARCH 9, 2023

In the course of its IPO planning in 2021, Reddit reported having roughly 344,000 Premium users, equating to around $24 million per year in non-advertising revenue. Securities and Exchange Commission (SEC). Exercising options means that you are buying shares at your strike price, a number set at the time the options were granted.

Planning 52

Planning Taxes Advertising Tax Planning 52

Harness Wealth

JUNE 9, 2023

While it may seem like a luxury that is only available to the wealthy, anyone is capable of building an effective financial plan and putting it into action. Without effective personal financial management, you risk losing money to poor budgeting, poor tax planning, or even just to inflation.

Financial Planning 52

Financial Planning Planning Financial Planner Wealth Management 52

Harness Wealth

APRIL 28, 2023

It’s also a good idea to keep track of your payments and save any receipts or confirmation numbers as proof of payment and inform your Harness Tax Advisor or other tax professional. Use Form 1040-ES to calculate and pay estimated taxes on any equity compensation or sales.

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Taxes Distribution Startup Assets 52

Harness Wealth

MARCH 3, 2023

In the case of Stripe’s double-trigger RSUs, the dollar amount vested is recorded as ordinary income in the tax year, and the taxable amount is calculated as the difference between the fair market value (aka, valuation) and the awarded price. It’s a number that must be determined by a third-party firm.

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Taxes Valuation Startup Sales 52