Section 409A of the Internal Revenue Code is a complex and often counterintuitive set of tax rules applicable to deferred compensation. Deferred compensation exists when an […]
Some founders and key executive negotiate into their equity arrangements that they will be entitled to some form of acceleration of the vesting of their equity […]
Basis points measure the variation in financial instruments that often fluctuate in very small increments. One basis point is equal to .01%; therefore, 100 basis points […]
A cap table tells you “who owns what.” They can be summary in nature by grouping all holders into simplified buckets such as “founders” and “investors” […]
Non-qualified Stock Options (NSOs) are stock options that, when exercised, result in ordinary income tax on the difference between the exercise price and the fair market […]
Safe (“Simple Agreement for Future Equity”) is a term used by Y Combinator that describes short “open source” documents that have been drafted for use in […]
If you earn shares through vesting by remaining with a company, the Internal Revenue Service treats that equity as taxable income as it vests if it […]
