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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