The Startup Magazine

MAY 13, 2022

We’ll address the fundamental considerations to consider when distributing stock in a business, including the method of dividing equity among founders and typical traps to avoid, in this post. As a result, you will have no dividend or voting rights until you convert your options to stock.

Equity 140

Equity Founder Vesting Cofounder 140

Both Sides of the Table

JULY 29, 2010

In fact, far better if you haven’t raised venture capital. People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). The downside is that people need to buy their stock. This is minutes 8-11.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

YoungUpstarts

JANUARY 26, 2017

Thanks to the considerable tax write-offs available for intangible drilling costs (IDCs) and tangible drilling costs (TDCs), oil and gas investing can drastically lower your tax bill — even when compared to investing in the more traditional stock or real estate markets. Stock and Real Estate — What Most CPAs Have Heard of.

CPA 100

CPA Capital Gains Stock LLC 100

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

YoungUpstarts

JUNE 24, 2016

This means that there’s no need to tie up the full market value of purchasing the equivalent stock position and traders can instead open larger position than their capital would normally permit. compared to a traditional share purchase – and the fact that spread betting is not subject to capital gains tax.

Capital Gains 100

Capital Gains Stock Naming Operations 100

Gust

SEPTEMBER 5, 2012

Like any promissory note, it bears interest (usually at a nominal rate) and has a maturity date on which the loan must be repaid if it hasn’t been converted to stock (typically around 18 months). This is true, although interest is generally paid in stock upon conversion. How can this possibly make sense?

Finance 134

Finance Convertible Security Equity Seed Stage 134