Exclusively what and restricted to whom? Restricted Stock Basics

I have seen increasing interest in restricted stock as a form of founder/early employee compensation.  While  many entrepreneurs are well versed in stock options, their understanding is less precise when we discuss restricted stock. Restricted stock is fairly straight forward. The company issues common stock to the employee and puts some restrictions on the stock.  So what […]

Don’t forget Rule 701: the exemption for employees and consultants

Launching a company is relatively easy in the USofA.  File a few forms, pay your State and local government the required fees and you’re off. Many places even allow you to do this online.  Things get more complicated, however, when shares are issued to investors or employees. Most startup types are familiar with Regulation A […]

Taxing the Twitter

Recently, San Francisco passed this ordinance, limiting the amount of payroll tax on stock based compensation.  San Francisco Supervisor, Ross Mirkarimi, published this op ed piece calling for an expansion of the tax breaks given to Twitter to other San Francisco companies for stock options, but limiting the overall breaks for payroll taxes. In summary, […]

Many Options with Stock Options

Let’s face it- in the startup game, it’s all about the equity. Equity compensation plans, which include stock options, permit young companies to compensate employees, consultants and other service providers in a cost effective manner. There are several types of equity incentives, each with it’s own unique tax and accounting implications. The common forms of […]