Both Sides of the Table

JULY 29, 2010

Mike Stern (wasn’t sure which one so leave a comment if it’s you): Q: “is it possible to sell your startup without venture investment if the company has big traction and a large user base?&# In fact, far better if you haven’t raised venture capital. This question runs from about minute 2 – minute 8.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

The Startup Magazine

MAY 4, 2023

Disabled access credit (DAC) helps business owners scale down on costs associated with providing access to disabled employees. Employers can apply for an employee retention tax credit (ERC) to reduce their tax liability on salaries and wages. Companies can take 70% credit of an employee’s qualifying pay every year.

Small Business 124

Small Business .Net Retention Employee 124

VC Adventure

AUGUST 15, 2018

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.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

YoungUpstarts

SEPTEMBER 27, 2017

In today’s start-up culture, it’s common for companies to offer employees the opportunity to own stock in the business. While most folks know the basic benefits of receiving stock, many employees are taken off guard by the tax implications that follow. Employees with ISOs have some specific tax benefits that other options lack.

Stock Options 124

Stock Options Stock Capital Gains Vesting 124

Steve Blank

APRIL 11, 2018

If you asked me why I gravitated to startups rather than work in a large company I would have answered at various times: “I want to be my own boss.” “I It never crossed my mind that I gravitated to startups because I thought more of my abilities than the value a large company would put on them. I love risk.” “I

Entrepreneur 336

Entrepreneur Business Model Capital Gains Aggregator 336

Feld Thoughts

MAY 9, 2011

This afternoon in Boulder I’ll be on a panel as part of the White House Startup America Roundtable. More recently, I’ve focused my energy on the Startup Visa movement and the Startup America Partnership. Tax Policy : Incent people to invest in startups.

Government 143

Government Technical Review Intellectual Property Accredited Investor 143

Gust

JULY 31, 2012

Amidst all the talk of failures and exits, we forget there are actually three possible outcomes for angel-backed startups. 1) Many flop (companies that do not return capital to investors) 2) some companies provide angels with an upside on their investment and 3) some companies go sideways.

Exit Strategy 135

Exit Strategy Angel Investor Capital Gains Startup 135

Gust

JULY 23, 2012

Donations of private stock enable investors, founders and employees to support charitable causes and contribute to the community while receiving simultaneous benefits in the form of substantial cash savings from reduced taxes as well as bypassing capital gains taxes. These assets often have a relatively low cost basis (e.g.

Stock 114

Stock Capital Gains Warrant Stock Options 114

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. Most venture-funded startups have different classes of stock: common and various flavors of preferred.

Equity 56

Equity Employee Vesting Preferred Stock 56

The Equity Kicker

NOVEMBER 7, 2012

tax breaks for individuals who invest in qualifying startups and hold those investments for a minimum time (like the EIS scheme in the UK). reduce capital gains tax for assets held for a long period. give capital gains tax breaks to entrepreneurs. Allow startups employees to trade employment protection for equity.

Capital Gains 123

Capital Gains Government Venture Capital Equity 123

Startup Company Lawyer

MAY 13, 2009

The budget proposal would modify IRC Section 1202 to provide for a complete exemption from capital gains tax for qualified small business stock issued after February 17, 2009 and held for five years, and the amount excluded would not be added back for alternative minimum tax purposes. Current Law.

Capital Gains 47

Capital Gains Stock Small Business Redemption 47

Both Sides of the Table

NOVEMBER 4, 2009

This is part of my Startup Advice series. at a startup that has already raised $5 million the chances of you making your retirement money on that company is EXTREMELY small. Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. That’s Ok.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

www.seriesseed.com

DECEMBER 9, 2012

Good idea, I think this will benefit lots of startups and some angels. Long term capital gains possible for early exit. It would be helpful to get a California standard employee manual, employee contract/agreements, IP ownership release to company, and confidentiality. Ted: Great service to the startup community!

Finance 40

Finance Term Sheet Vesting LLC 40

Startup Company Lawyer

JULY 20, 2009

Founders of startup companies often wait to incorporate a company until they are confident that their concept is viable or fundable. Trying to clean up pre-incorporation promises to grant equity in a startup company is a painful task, especially if founders part ways before there are formal documents in place to deal with the situation.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

Bryce Dot VC

APRIL 20, 2015

Independent businesses should provide equity or equity-like profit sharing to all employees that should be reported in percentage of company/profits vs. number of shares. Independent businesses provide a real time view into companies financials and make that available to all employees.

Equity 40

Equity Capital Gains Bootstrapping Distribution 40

The Startup Lawyer

JANUARY 19, 2010

2) receive long-term capital gains treatment for taxable gain at the stock sale (instead of ordinary income tax rates). In order to receive the tax benefits of ISOs, the startup and stock option holder must comply with various rules. Only employees of the startup can receive ISOs. Continuous Employment.

Stock Options 40

Stock Options Stock Capital Gains Employee 40

K9 Ventures

NOVEMBER 21, 2011

Let’s say you’re the founder (I use a solo-founder in my example to keep things simple, but this could just as well apply to a founding team) of a startup called Blood, Sweat and Tears, Inc. They want to keep the founders “all-in” in the startup, because they feel that otherwise the founders won’t be motivated enough.

Founder 87

Founder Common Stock Preferred Stock Stock 87

K9 Ventures

NOVEMBER 21, 2011

Let’s say you’re the founder (I use a solo-founder in my example to keep things simple, but this could just as well apply to a founding team) of a startup called Blood, Sweat and Tears, Inc. They want to keep the founders “all-in” in the startup, because they feel that otherwise the founders won’t be motivated enough.

Founder 84

Founder Common Stock Preferred Stock Stock 84

Up and Running

APRIL 29, 2014

Oftentimes, the example is, in your business you have an employee. Now as a business owner, you take two hats and put both on sometimes simultaneously, one as the investor and owner of the business, and the other area is as the employee of the business. They get injured on the job. Yes, you have insurance. Let’s be honest here.

.Net 85

.Net Capital Gains Distribution Puerto Rico 85

Ben's Blog

APRIL 7, 2021

Non-competes are contracts between employers and employees that prohibit employees from leaving to join competing companies, often for a specific period of time. Non-solicits are the same, but prohibit former employees from recruiting others they may have worked with at a given company to join them at a new company.

Silicon Valley 36

Silicon Valley Non-Compete San Francisco Government 36

This is going to be BIG.

NOVEMBER 21, 2021

We wanted to stay in that physical space, so we wound up merging with a startup who needed at office. There were about ten indie coworkers from the original community and ten employees of this startup. The vibe of the community started to come apart quickly. He said, “You know what would be easier? That rarely works out.

Community 103

Community Engineer Cofounder Capital Gains 103

This is going to be BIG.

NOVEMBER 15, 2020

There was what seemed like an endless stream of bombshell announcements for four months: Alphabet’s Waymo unit filed a lawsuit against Uber claiming that a former Waymo employee, Anthony Levandowski, stole secrets related to autonomous vehicle technology. Take the story of luggage startup Away’s CEO Steph Korey. They got worse.

Cofounder 218

Cofounder Founder Employee Silicon Valley 218

Both Sides of the Table

AUGUST 30, 2010

And the tax changes for 2011 could cause a further end-of-year sell-off: Another factor often not discussed is that the capital gains tax increases coming into effect in 2011 are might just lead to a stock market sell-off in Q410 as investors “lock in” gains at a lower tax rate.

Entrepreneur 298

Entrepreneur Technical Review Balance Sheet Government 298

Both Sides of the Table

JANUARY 2, 2016

They get to have “long-term capital gains” taxes which are much lower than short-term capital gains taxes paid by people who have stock options or income taxes paid to workers. We invest large sums of our after-tax money into our funds and this gets a long-term capital gain tax rate when we make a profit.

Dividend 150

Dividend Silicon Valley Capital Gains Stock 150