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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

This week they set out to create their cap table and hire a CTO. 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. They come up with two options: Hire Praveena as an employee and offer her stock options.

Cap Table 133
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Nokia as “He Who Must Not Be Named” and the Helsinki Spring

Steve Blank

While the government says they love startups, the first thing they did this year is raise the capital gains tax. They’ve stopped hiring the best talent, and startups are not looking so risky compared to large companies. Many founders mentioned this as a reason not to incorporate or grow their companies in Finland.

Finland 324
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What’s a Fair 409A Discount?

VC Adventure

In a funny way it also benefitted the IRS in terms of tax collections as employees were taxed on the spread between the option and the value of the stock on exit and since these shares were typically exercised at the time of an exit were subject to short term capital gains.

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Why Entrepreneurs Start Companies Rather Than Join Them

Steve Blank

There was little loss when they missed hiring employees who had entrepreneurial skills. The type of people Google and Marissa Mayer wouldn’t and didn’t hire started the companies they bought. So, how much of signaling (hiring only by resume qualifications) is influenced by the economic environment? Entrepreneurship.

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How Federal Government Can Help Entrepreneurship

Feld Thoughts

Make it simple – eliminate capital gains if an individual (who is an accredited investor) invests equity (i.e. The solution so far has seemed to be “hire more people to process more paper faster.&# risk of 100% loss of investment) in a private company with less than 100 employees.

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Do Nonprofit Organizations Need to Pay Taxes?

Board Effect

Do nonprofits pay taxes on capital gains on donations? Does your nonprofit hire employees? If you’re ready for some board discussions around nonprofit tax laws, the following questions make good topics for board education: Do nonprofits pay property taxes? What do nonprofits pay taxes on? Do nonprofits pay taxes on dividends?

CPA 59
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When do I need to incorporate a company?

Startup Company Lawyer

Hiring employees or third party contractors. Although I’ve run into a situation where the former CEO of a Fortune 500 company personally paid an “employee&# out of his own pocket for a year prior to incorporation while incubating an idea, most founders will need to incorporate a company if they intend to hire employees.

IP 67