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Why not share your liquidity success with those who got you there?

Berkonomics

Formal option plans for some. Some companies, especially those financed by angel or VC investors, have good, formal stock option plans with properly priced options set to reward all employees and managers in the event of a corporate sale. Each was surprised, pleased and effusive. Consider the kinds of exits.

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Crucial Things You Need To Know About Your First External Audit For Series B

YoungUpstarts

Before your financial statements can be filed with the SEC or distributed outside of your business, an external auditor must ensure your records adhere to GAAP. That can affect your first-time audit in two main ways: with stock option expensing and 409A Valuations. Stock Option Expensing. . 409A Valuations.

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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while. They come up with two options: Hire Praveena as an employee and offer her stock options. Bring Praveena in as a founder and offer 10-20% of the company as stock.

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What’s a Fair 409A Discount?

VC Adventure

It was and is imprecise science but – at least in the case of venture backed startups – there wasn’t much harm in an option being priced low.

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Should Startups Care About Profitability?

Both Sides of the Table

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. Is the revenue dependent on a concentrated set of distribution partners or platforms that put future revenue at risk? Two-f **g-billion!

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How To Start A Business The Right Way

The Startup Magazine

Once the product or service has withstood this period of stress testing, your business can put more resources into making it work and distributing it to the broader market. . If your vision is powerful enough, you can make up for this by offering recruits stock options. Many startups recruit employees in this way.

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6 Best Practices to Set Up an ESOP for Your Business

Up and Running

Employee retention, for both startups and established businesses, is more important than ever. More and more employees are leaving roles to join companies that offer greater flexibility, increased benefits, higher pay, or even a more mission-driven culture. Federal income tax-free earnings until employees take distributions.

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