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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. . At that point, the options are converted just before the sale, and the shares are then sold with the rest of the firm. Required funds.

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7 Tax Planning Strategies for Small Businesses

The Startup Magazine

After all, navigating through State, Federal, income, corporate, and sales taxes is no cakewalk. Disabled access credit (DAC) helps business owners scale down on costs associated with providing access to disabled employees. Companies can take 70% credit of an employee’s qualifying pay every year.

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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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Why You Can’t Afford To Wait To Create A Succession Plan For Your Small Business

YoungUpstarts

If you don’t have a family successor, then you might have to look for a trusted and competent employee. Your succession plan might incorporate a path for the employee to buy the company over time. The sale price of the company needs to account for that equity. Reason No. 3: Financial Planning, Training & Retirement Details.

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[Infographic] How Do Taxes Affect Your Startup?

YoungUpstarts

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. The amount paid is then used to support programs such as social welfare and workers’ compensation.

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Obama proposes no capital gains tax on qualified small business stock

Startup Company Lawyer

The budget proposal would modify IRC Section 1202 to provide for a complete exemption from capital gains tax for qualified small business stock issued after February 17, 2009 and held for five years, and the amount excluded would not be added back for alternative minimum tax purposes. Current Law. Reasons for Change.

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Sideways Startups: Donating Private Stock

Gust

Donations of private stock enable investors, founders and employees to support charitable causes and contribute to the community while receiving simultaneous benefits in the form of substantial cash savings from reduced taxes as well as bypassing capital gains taxes. These assets often have a relatively low cost basis (e.g.

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