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?

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

Learn more about how advisors can help your startup. We cover typical advisory agreements, common share grants and how to get the most out of your relationship with your advisors.

Greg MiaskiewiczBy Greg Miaskiewicz • 7 min read

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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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

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

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

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

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

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

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

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

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

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

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

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

When you are incorporating your startup, you need to decide how many shares to authorize. Most startups authorize 10 million common shares when first setting up their corporation.

Stefan NageyBy Stefan Nagey • 7 min read

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

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

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

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

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