This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
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.
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?
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.
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.
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?
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.
We organize all of the trending information in your field so you don't have to. Join 36,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content