Category: Start.

Startups issue restricted stock and allow early option exercises all the time. But without a timely 83(b) Election, recipients could face huge, unexpected tax bills as their companies grow. With the ability to file an 83(b) Election online, there’s no excuse to miss the deadline. The process is now faster, easier and more reliable, making it simpler than ever for founders, employees and advisors to maximize their upside.

You are excited about your company’s prospects and you believe that your business really will take off once you get the right amount of money in the door. Raising money is complicated and there are a lot of moving parts. Will you use general solicitation to seek potential investors? Are you ready to take reasonable steps to verify accredited investor status?

Here are the 10 million reasons: Down the road your C corporation could help you save taxes on up to $10 million when you sell the stock of your company. You are starting a new company now and you are trying to figure out whether you should form a limited liability company (LLC) or a corporation. And, even if you decide to set up a corporation, should it be an S corporation or a C corporation?

TL;DR: Equity distribution is a crucial decision for startup founders, impacting ownership, team incentives and investor funding. Founders should strategically allocate equity among co-founders, employees and investors while planning for dilution and maintaining control. Key considerations include structuring fair founder splits, creating a stock incentive pool (typically 10-20% of equity), implementing vesting schedules to protect…