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83(b) Election: Tax Strategies for Unvested Company Stock

Darrow Wealth Management

For founders, employees, and executives with stock-based compensation, an 83(b) election can be a powerful tax planning tool. Most tax planning strategies focus on deferring tax, but an 83(b) election is all about accelerating it. Startup founders, early employees, executives, and other service providers can make an 83(b) election.

Taxes 104
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Tender Offers: A Comprehensive Guide for Startup Employees

Harness Wealth

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. How Do Tender Offers Work?

Startup 52
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Reddit IPO: Planning ahead for 2023

Harness Wealth

Reddit is planning an IPO for the second half of 2023. But between subpar macroeconomic conditions and a lackluster IPO market, the plans were soon put back on the shelf. But between subpar macroeconomic conditions and a lackluster IPO market, the plans were soon put back on the shelf. How does Reddit make money?

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What Is An Early Exercise of Stock Options?

Darrow Wealth Management

If you work for a private startup, you may be able to exercise your stock options early. In most stock plans, option grants vest over time and exercising isn’t possible until shares are fully vested. So employees with equity compensation still need to earn their startup equity. When should you exercise an option early?

Taxes 67
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83(b) Election: Tax Strategies for Unvested Company Stock

Darrow Wealth Management

For founders, employees, and executives with stock-based compensation, an 83(b) election can be a powerful tax planning tool. Most tax planning strategies focus on deferring tax, but an 83(b) election is all about accelerating it. Startup founders, early employees, executives, and other service providers can make an 83(b) election.

Taxes 52
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The Alphabet Soup of Equity Compensation

Harness Wealth

In this article, we’ll define some of the most common forms of equity compensation issued by startups and established companies alike, including RSUs, ISOs, NSOs, and more. However, the 83(b) election carries risks and should be carefully considered with the help of a financial advisor.

Taxes 52
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What You Need to Know about Restricted Stock Units (RSUs)

Harness Wealth

Work with a Harness Wealth Advisor Whether you are a founder or an early employee at a startup, it’s important that you understand the tax implications of decisions you make today regarding how your company is structured, how and when you’re taxed on stock shares, and when you exercise stock options.

Taxes 52