Tag Archives: Stock Options

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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Where Do I File My 83(b) Election?

If you have never filed a Section 83(b) election before, you might not know where to file it. Increasingly, founders come to me who have been filing their Forms 1040 electronically. Many of these founders have never filed paper returns, … Continue reading

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Stock Option Exercise Tax Math

Exercising a stock option is not always as straight forward as you might expect. The reason? Taxes. How to Calculate the Tax on the Exercise of an NQO “Spread” means the positive difference between the fair market value of the … 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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Stock Option Deduction Debate: Journey Down the Rabbit Hole

Have you ever wished you’d coined a phrase? I wish I’d coined the phrase “curiouser and curiouser” from Alice in Wonderland. As time goes by, our laws and regulations and accounting pronouncements become, by virtue of amendments, inflation (without corresponding … Continue reading

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