Articles tagged

Startup Equity

We cover many important questions about startup equity for founders, employees and investors, including: How many shares should a startup authorize at incorporation? How do common shares work? How should founders plan to allocate equity to employees out of the startup's employee stock option plan? What is the difference between options and restricted shares in employee equity compensation?

Pre-Money vs. Post-Money Valuation Explained

A beginner’s-level introduction to pre and post-money valuation tailored to startups incorporated in the United States.

Greg Miaskiewiczby Greg Miaskiewicz • 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

Post-Incorporation Checklist: 9 Steps After You Incorporate Your Startup

We cover some of the important steps founders will need to take after incorporating their startup, like 83(b) elections, getting an EIN, opening a bank account & more.

Stefan Nageyby Stefan Nagey • 4 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

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 Startup Equity Works: Common and Preferred Share Classes

Startups typically issue common shares to founders, employees, advisors and consultants; they issue preferred shares to investors as part of venture financing rounds The preferred class of stock in a startup is typically subdivided into series, each representing a different round of financing, like Series A, Series B, and so on.

James Hottensenby James Hottensen • 3 min read

9 Common Legal Mistakes Made By Startups and How To Avoid Them

Avoid these common legal mistakes made by startups and save your company from dealing with fines and lawsuits. As a startup founder, keeping your company compliant is essential to protecting the value of your startup equity and reaping the rewards of your hard work.

Greg Miaskiewiczby Greg Miaskiewicz • 7 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

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

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

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

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