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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. . nominal versus market price), this is seen as quick revenue. To keep things simple, we’re skipping over possible capital gains taxes. .

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How Employee Share Schemes Work

YoungUpstarts

The employee share scheme is also referred to as the employee equity schemes or employee share purchase plans. Through this plan, directors and company employees can obtain shares in the company. Some companies opt to use this method to keep the employees engaged and promote culture growth within the company.

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Venture Capital Q&A Session

Both Sides of the Table

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). In fact, far better if you haven’t raised venture capital. Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?&#

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Understanding Stock Options

YoungUpstarts

In today’s start-up culture, it’s common for companies to offer employees the opportunity to own stock in the business. While most folks know the basic benefits of receiving stock, many employees are taken off guard by the tax implications that follow. Employees with ISOs have some specific tax benefits that other options lack.

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What’s a Fair 409A Discount?

VC Adventure

As is true today, there was a requirement that options be priced at or above the “fair market value” of the underlying stock (otherwise there would be tax consequences to the optionee and sometimes to the company as well).

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Why Entrepreneurs Start Companies Rather Than Join Them

Steve Blank

Entrepreneurs defer getting more formal education because they correctly expect their productivity will be higher than the market can infer from just their educational qualifications. There was little loss when they missed hiring employees who had entrepreneurial skills. There are no signals for entrepreneurial skills.).

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[Infographic] How Do Taxes Affect Your Startup?

YoungUpstarts

It is one of the commonly used strategies to survive, especially in today’s competitive market. Companies are obliged to pay a portion of the payroll tax of their employees. On top of that, there’s the usual sales tax and capital gains tax to cover. For starters, there’s the income and payroll taxes.