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How to split startup equity between startup founders when starting a new business

The Startup Magazine

Take the time to iron out the specifics so that you can prevent misunderstandings, compensate employees properly, and run your company in a manner that is pleasant for your staff. . Equity allocation is also inextricably tied to the stage of financing. To keep things simple, we’re skipping over possible capital gains taxes. .

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Series Seed Financing Documents

www.seriesseed.com

Series Seed Financing Documents Blog. Series Seed Financing Documents. Listed below are links to weblogs that reference Series Seed Financing Documents : 1 Reblog. Long term capital gains possible for early exit. SeriesSeed.com. Blog Archives. « About the Series Seed Documents | Main. Reblog (1).

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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

As Finance Fridays continues, we are introducing the concept of the Cap Table. Later, if they sell, the low tax basis and capital gains tax rates result in a lower tax liability than if they didn’t file the 83(b) election. As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while.

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What’s a Fair 409A Discount?

VC Adventure

It was a benefit to employees and a slight value transfer from equity holders to option holders (generally speaking in M&A transactions the value of the aggregate option exercise ends up allocated across the rest of the cap table). Similarly I assumed that later stage companies would also show a smaller gap.

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Venture Capital Q&A Session

Both Sides of the Table

Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?&# I talked about the need to have a restricted stock plan for your earliest employees. You’re not screwing me – you’re screwing your fellow employees.

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7 Tax Planning Strategies for Small Businesses

The Startup Magazine

Disabled access credit (DAC) helps business owners scale down on costs associated with providing access to disabled employees. Employers can apply for an employee retention tax credit (ERC) to reduce their tax liability on salaries and wages. Companies can take 70% credit of an employee’s qualifying pay every year.

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Why Entrepreneurs Start Companies Rather Than Join Them

Steve Blank

And why funding from families and friends is a dominant source of financing for early-stage ventures (because friends and family know an entrepreneur’s ability better than any resume can convey). There was little loss when they missed hiring employees who had entrepreneurial skills. tend to gravitate toward entrepreneurship.