www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers.

Equity 56

Equity Employee Vesting Preferred Stock 56

Gust

JULY 31, 2012

Editor’s Note: For a great tip on unloading private stock, read this post about how you can donate it.d. 1) Many flop (companies that do not return capital to investors) 2) some companies provide angels with an upside on their investment and 3) some companies go sideways.

Exit Strategy 135

Exit Strategy Angel Investor Capital Gains Startup 135

Both Sides of the Table

NOVEMBER 4, 2009

OK, you would own 0.25% of the stock. Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. That’s an after-tax gain of $287,500 / year for 2 years. Stock vests for 4 years. Stock options are the icing on the cake.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

www.seriesseed.com

DECEMBER 9, 2012

Locks in rights, preferences and priviledges of the stock. Long term capital gains possible for early exit. It would be helpful to get a California standard employee manual, employee contract/agreements, IP ownership release to company, and confidentiality. Sets the valuation at the time of the investment.

Finance 40

Finance Term Sheet Vesting LLC 40

This is going to be BIG.

APRIL 4, 2021

They make money off of equity and stock option gains, as well as investment partnership interests that are taxed at lower capital gains rates. First off, taxes are but one aspect of cost—especially when income taxes aren’t affecting wealthy New Yorkers as much as their advocates would have you believe.

New York City 74

New York City Wyoming New York Florida 74

K9 Ventures

NOVEMBER 21, 2011

If there is one piece of advice I would give to the founders of BST, it is to consider selling a part of their personal stock in the company at that stage. 2) Fairness to other early employees in the company : This is a very critical and important point, that is often overlooked by founders.

Founder 87

Founder Common Stock Preferred Stock Stock 87

K9 Ventures

NOVEMBER 21, 2011

If there is one piece of advice I would give to the founders of BST, it is to consider selling a part of their personal stock in the company at that stage. 2) Fairness to other early employees in the company : This is a very critical and important point, that is often overlooked by founders.

Founder 84

Founder Common Stock Preferred Stock Stock 84

Startup Company Lawyer

JULY 20, 2009

Incorporating a company and issuing stock to the founders will help prevent misunderstandings among the founders about equity splits. Hiring employees or third party contractors. Issuing stock options. Creating intellectual property. Launching a service/product and general liability issues.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

Cracking the Code

OCTOBER 12, 2012

This post is a translation of the article: « Pigeons » : le cri d'alarme d'un fonds américain published on LaTribune (12/10/2012) and is a response to the proposed tax law proposed by the government of Francois Hollande, suggesting to tax all capital gain at the same level than salaries or 60%.

France 71

France Europe Capital Gains Dilution 71

The Startup Lawyer

JANUARY 19, 2010

A stock option grants you the right to purchase a certain number of shares of stock at a pre-established price. An incentive stock option (ISO) is a type of stock option that allows favorable tax treatment to the stock option holder. Only employees of the startup can receive ISOs. Stock Option Plan.

Stock Options 40

Stock Options Stock Capital Gains Employee 40

Ben's Blog

APRIL 7, 2021

Non-competes are contracts between employers and employees that prohibit employees from leaving to join competing companies, often for a specific period of time. Non-solicits are the same, but prohibit former employees from recruiting others they may have worked with at a given company to join them at a new company.

Silicon Valley 36

Silicon Valley Non-Compete San Francisco Government 36

ReadWriteStart

JANUARY 28, 2022

Common stock. The holding of common stock in a company indicates ownership in the corporation. Dividends paid and capital gains realized on a per-share basis provide ordinary shareholders with a way to participate in the profits stream of the company. Preferred shares. Equity Benefits in a Company.

Valuation 108

Valuation Equity Warrant Common Stock 108

paulgraham.com

SEPTEMBER 23, 2012

It might seem foolish to sell stock in a profitable company for less than you think it will later be worth, but its no more foolish than buying insurance. 13 ] Fundamentally the same thing that makes everyone else want the stock of successful startups: a rapidly growing company is valuable.

Startup 111

Startup Technical Review Software Review Acquisition 111

Both Sides of the Table

AUGUST 30, 2010

My original thinking from Oct ’09 was, while I didn’t (and still don’t) have a crystal ball I worried that: consumers were over-stretched with debt (and make up 77% of the economy), unemployment would continue to rise, which in turn would drive the stock market south and cut the rate of M&A activity and VC investment even further.

Entrepreneur 298

Entrepreneur Technical Review Balance Sheet Government 298

YoungUpstarts

OCTOBER 22, 2019

For example, when it comes to something like your employees , it’s not just about productivity, but it’s about ensuring their well-being is catered for. The casual investor could go for something like the total stock market, capital bonds, or international stock options.

Portfolio 113

Portfolio Due Diligence Stock Options Stock 113

Both Sides of the Table

JANUARY 2, 2016

They get to have “long-term capital gains” taxes which are much lower than short-term capital gains taxes paid by people who have stock options or income taxes paid to workers. To me it favors people like me with capital over those that are purely labor. Founders start companies.

Dividend 150

Dividend Capital Gains Silicon Valley Stock 150