Monthly Archives: February 2009

On What Date Do I Price Stock Options?

It is very common for a company to hire an employee on a specific date and in the employee’s offer letter state that “subject to board of directors approval, the employee will be granted a stock option” to acquire a … Continue reading

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One Benefit Of LLCs–Profits Interests

LLCs taxed as partnerships as a choice of entity have their drawbacks, which we have discussed elsewhere.  However, LLCs do have one advantage over corporations when it comes to granting equity interests to service providers–they can grant what is know … Continue reading

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How Do I Value My Company So That I Can Grant Stock Options?

Startup companies frequently have to confront this issue.  After the founder stock issuances, the company will want to be able to grant stock options to new hires.  Internal Revenue Code Section 409A requires that stock options be granted at fair … Continue reading

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LLCs as S Corporations? Why?

I have heard CPAs on more than one occasion recommend a client form a state law limited liability company, check the box to be taxed for federal income tax purposes as a corporation, and then make an S election.  The reason–according to … Continue reading

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S Corporation or LLC?

For founders who want a pass through company for tax purposes, which is better–an S corporation or a limited liability company? Continue reading

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