Founder Equity
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.
by Jason D. Rowley • 12 min readVesting 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.
by Greg Miaskiewicz • 7 min readWhat is Stock Dilution?
When a company authorizes new stock, the value of existing stock is reduced. Here's the why and how.
by Capbase Staff • 7 min readHow 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.
by Capbase Staff • 7 min readWhen 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.
by Capbase Staff • 7 min read5 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.
by Capbase Staff • 7 min readHow 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.
by Capbase Staff • 7 min readThe 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.
by Greg Miaskiewicz • 8 min readHow 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.
by Stefan Nagey • 4 min readHow 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.
by Greg Miaskiewicz • 9 min readC 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.
by Stefan Nagey • 5 min readWhat 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.
by Greg Miaskiewicz • 7 min read