Articles tagged

Employee Equity Compensation

Many startups incentivize key hires through the use of generous equity grants, especially early in the life of the company when the startup cannot afford to pay market rate salaries to talented employees they are recruiting to join their companies. Learn how to start issuing equity to employees, advisors and consultants at your startup as well as key concepts in employee equity compensation, like the difference between share grants and stock options, vesting schedules, incentive stock options and early exercise.

When Do I Need a 409a Valuation?

You don't need a 409a in order to distribute co-founder shares—but you'll need one eventually.

Bryce Warnesby Bryce Warnes • 7 min read

Why You Should File Your Section 83 (b) Election

Learn why you should file your 83 (b) election when purchasing your founders shares in your startup. Topics covered include tax implications, filing deadlines, and the process to complete the 83(b) election filing with the IRS.

Stefan Nageyby Stefan Nagey • 5 min read

What is Single Trigger and Double Trigger Acceleration?

Trigger accelerations are often a hotly debated topic (especially in companies acquired by VCs) as any outstanding equity will impact the value of shares of the purchase price.

Greg Miaskiewiczby Greg Miaskiewicz • 7 min read
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What is a 409A Valuation? Startup Stock Valuation Explained

409A valuations are independent appraisals of a startup's common stock. Startups should use an independent, outside valuation firm to get a 409A valuation before offering stock options to employees to avoid fines and legal issues with the IRS.

Greg Miaskiewiczby Greg Miaskiewicz • 9 min read

Should a Startup Allow Early Exercise of Stock Options?

Startups that allow the early exercise of stock options help minimize their employees’ tax liabilities and increase the return on common stockholder equity.

Greg Miaskiewiczby Greg Miaskiewicz • 7 min read

Par Value & FMV: How To Price Your Startup's Common Shares

Just getting your startup incorporated? Find out how to price your company's common shares and learn how the fair market value (FMV) of common shares changes as your company grows.

Stefan Nageyby Stefan Nagey • 8 min read

LLC vs. C Corporation: Issuing Equity to Employees

Issuing equity to employees in an LLC can be complex and require tax advice. Many startups prefer to incorporate as C Corporations because the process for issuing equity to employees is much simpler.

Greg Miaskiewiczby Greg Miaskiewicz • 5 min read

ISO vs. NSO: Which Are Better For Employees?

Should you grant your startup employees their stock options as ISO or NSO? Why do most early stage companies grant their employees equity options in the form of ISO instead of NSO? The answer: ISO have special tax advantages.

Greg Miaskiewiczby Greg Miaskiewicz • 6 min read

How Vesting Schedules Work

Learn how vesting schedules work for founders and employees at startups. Many startup founders have a 4 year vesting schedule with a 1 year cliff.

Greg Miaskiewiczby Greg Miaskiewicz • 6 min read

How To Start Giving Equity To Your Employees

Key steps you have to complete before your startup starts issuing shares or stock options to employees. Learn about fair market value, 409a valuations, restricted shares and other key concepts in equity compensation.

Greg Miaskiewiczby Greg Miaskiewicz • 7 min read

How Does a Startup Option Pool Work?

Learn how startup stock option pools work and how to use equity compensation to recruit key employees to join your team.

Greg Miaskiewiczby Greg Miaskiewicz • 7 min read

Employee Stock Compensation: Equity vs. Options

A detailed overview of the different types of equity compensations for employees at startups, including restricted shares awards, stock options and RSUs. Each type of equity award has different tax implications for employee shareholders at startups.

Stefan Nageyby Stefan Nagey • 5 min read

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