Harness Wealth

FEBRUARY 26, 2023

Cost-saving tax planning can be much more difficult to implement after your company is well-established and has reached the stage where an IPO, merger, or acquisition becomes a likely event. Types of shares to offer: ISOs, NSOs, RSAs, RSUs Startups must determine how best to issue stock shares to employees. More on this below.

Tax Planning 52

Tax Planning Startup Taxes Planning 52

Harness Wealth

FEBRUARY 27, 2023

Founders, board members, and employees of startups that get acquired can experience tax consequences as a result of a liquidity event. It’s imperative to plan for the tax implications so you can be prepared to pay what you owe the IRS. Would you be willing to move to a state with lower taxes?

Tax Planning 52

Tax Planning Startup Taxes Planning 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 18, 2022

In this article on evaluating startup offers, we discuss: What’s typically shared about equity? How much will I be able to net after taxes? Number of stock options or RSUs. For tax purposes, those initial shares have a very low value (typically a fraction of a cent). Increasing Valuation. Source: [link].

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Valuation Taxes Tax Planning Startup 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. Reddit has its sights set on a $15 billion valuation for its IPO , but achieving that goal may prove challenging. However, Fidelity later reduced the valuation to $6.6

Planning 52

Planning Taxes Advertising Tax Planning 52

Harness Wealth

MARCH 3, 2023

A Stripe liquidity event is coming Rumors of a Stripe IPO began circling in 2021, after a $600 million Series H financing round pushed the company’s valuation to a massive $95 billion. Since then, in the midst of a sleepy IPO market and macroeconomic headwinds, Stripe’s plans have evolved. Do you have Stripe employee equity?

Taxes 52

Taxes Valuation Startup Sales 52

Darrow Wealth Management

MARCH 24, 2024

6 tax strategies for incentive stock options and AMT Triggering the alternative minimum tax isn’t the end of the world, but you don’t want to do it by accident. If the stock drops significantly during the year and you keep holding the shares, you could still trigger the AMT at the old, much higher, valuation.

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Taxes Tax Planning Planning Financial Advisor 59