Category Archives: Equity Compensation

The Unbearable Lightness (of Being an LLC)

I had a client press me recently about converting from an LLC (taxed as a partnership) to a corporation.  The client had been considering raising money from angels and wanted to grant traditional corporate-style stock option to employees. I suggested … Continue reading

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Going, Going, Gone: Qualified Small Business Stock

You may or may not be aware of this, but come December 31, 2013, one of the most exciting tax incentives for investing in startups is going to expire.  What am I talking about?  The 100% exclusion from tax for … Continue reading

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Stock Option Exercise Checklist

Congratulations, you’ve gotten your company off the ground.  You’ve incorporated, issued founder shares and filed 83(b) elections, adopted a stock option plan, granted stock options, and been working on your business for a while.  Now an employee who has been … Continue reading

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Do I Need A Share Reserve to Grant Compensatory Stock Options?

Stock options are key to startups. Despite some larger companies adopting restricted stock award plans, options are still the way to go for startups.  They are a vital recruitment, incentive and retention tool.

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Companies, Remember IRS Form 3921 For Employees Who Exercised ISOs

By Michael Gentile & Joe Wallin Corporations must now comply with an additional reporting requirement with respect to exercises of incentive stock options (nonqualified stock options are not subject to this new requirement).  Beginning with ISO exercises occurring in 2010, … Continue reading

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