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

Darrow Wealth Management

Startup founders, early employees, executives, and other service providers can make an 83(b) election. Stock at early-stage startups usually will have a very, very low valuation, making this tax strategy possible. For employees with stock options, making an 83(b) election can be important later if valuations increase.

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. Pros and Cons of Tender Offers for Startup Employees Personal Financial Planning Considerations Frequently Asked Questions What is a Tender Offer?

Startup 52
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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. So employees with equity compensation still need to earn their startup equity. The reason is simple: if the valuation keeps going up, so does the spread above your strike price. Stock price/valuations decline.

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

Darrow Wealth Management

Startup founders, early employees, executives, and other service providers can make an 83(b) election. Stock at early-stage startups usually will have a very, very low valuation, making this tax strategy possible. For employees with stock options, making an 83(b) election can be important later if valuations increase.

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

Harness Wealth

Private company RSUs If you have RSUs in a private company, the value of your shares is based on the current 409A valuation. A 409A valuation is an appraisal that must be produced by an independent third-party, and is meant to reflect the current fair market value of the company. What are double-trigger RSUs?

Taxes 52
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Reddit IPO: Planning ahead for 2023

Harness Wealth

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 Our startup equity tax advisors work with founders and employees from big names in tech, including Amazon, Zoom, Coinbase, Uber, and more.