Articles tagged

Founder Equity

Exploring important topics on founder equity in startups, such as: How to divide up equity with your co-founders? What is an 83(b) election and why founders should file one? How founders and startup employee shareholders can avoid being subject to alternative minimum tax (AMT)? Why do founders typically have a vesting schedule attached to their startup equity grants?

How Your Incorporation Decision Can Save Or Cost You Millions In Taxes

When it comes to the question of C Corp vs LLC, remember QSBS.

Jason D. Rowleyby Jason D. Rowley • 12 min read

Vesting Schedules: Best Practices for Startup Founders

Vesting schedules play an important part in keeping a startup together. They’re a designed as a motivator not only for employees, but also for founders. If you have them, it sends a signal to investors, that you’re in it for the long haul.

Greg Miaskiewiczby Greg Miaskiewicz • 7 min read

What is Stock Dilution?

When a company authorizes new stock, the value of existing stock is reduced. Here's the why and how.

Capbase Staffby Capbase Staff • 7 min read
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How Do Startups Typically Allocate Shares?

Learn how many shares you should authorize at the outset of your company, how to price them, and how to allocate them between founders, advisors, employees and contractors.

Capbase Staffby Capbase Staff • 7 min read

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.

Capbase Staffby Capbase Staff • 7 min read

5 Cap Table Mistakes to Avoid

Make sure you avoid the most common mistakes founders make when setting up their cap tables. Some of these issues can create major problem later on, including turning off potential investors.

Capbase Staffby Capbase Staff • 7 min read

How to Terminate Employees at your Startup

Learn the ins and outs of letting employees go, and what you can do to avoid potential issues later on.

Capbase Staffby Capbase Staff • 7 min read

The Ultimate Guide to Cap Tables for Startup Founders

Most founders have little clue about how cap tables work when they start their first startup. Keeping accurate records of your cap table is essential for startup founders if they plan on raising capital from VCs or selling the company.

Greg Miaskiewiczby Greg Miaskiewicz • 8 min read

How To Properly Deal With a Co-Founder Leaving Your Startup

Co-founder exits can be a messy ordeal for startups, but they don't have to be fatal. Learn how to avoid messy co-founder exits and protect your startup.

Stefan Nageyby Stefan Nagey • 4 min read

How to Register A Company in the US: Everything You Need to Know as an Overseas Founder

Registering in the US opens the door to venture funding for overseas startups. Learn about the process for registering your company in the US as a foreign citizen, including incorporation, taxes, visas and more.

Greg Miaskiewiczby Greg Miaskiewicz • 9 min read

C Corporation or LLC: Which is the best entity for your startup?

Startup investors strongly prefer to invest in C Corporations over LLCs for tax and diligence reasons. The proceeds from selling stock in startups registered as C Corporations can be tax exempt due to Qualified Small Business Stock exemption.

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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