What Is a Tender Offer? How This Liquidity Option Works
A tender offer typically gives shareholders an opportunity to sell some or all of their shares. A company or third party can be the offerer. Learn more.
S-Corp vs. C-Corp: A Guide to Corporate Tax Classifications
S-corp and C-corp are federal tax classifications commonly used by corporations. Here’s how they differ, and how to choose the right one for your startup.
Understanding the difference between ISOs and NSOs
Understanding the difference between ISOs and NSOs | Pulley
The Corporate Transparency Act: A Practical Guide for Founders, Investors, and Business Operators
Navigate the Corporate Transparency Act (CTA) with ease. Our guide covers essential BOI filing requirements, exemptions, penalties, and more.
Qualified Small Business Stock (QSBS): Frequently Asked Questions
QSBS status allows founders, investors, and employees to take advantage of favorable tax treatment when selling stock.
From Incorporation to Tax Season: Your 2024 Ultimate Equity Compliance Guide
From incorporation to equity compensation and tax preparation, learn how to navigate the complex compliance landscape efficiently.
Token Valuations 101: What you should know
A complete guide to Token Valuations - why you need them, and when you should consider getting one.
SAFE Tax Treatment: A Guide for Startups and SAFE Investors
The IRS may treat a Simple Agreement for Future Equity (SAFE) as equity or as an equity derivative for tax purposes. How a SAFE is taxed may affect the investor’s returns, so it’s important to consider this before striking a deal.
What Is a Cap Table? A Guide for Startup Founders
A capitalization table, or cap table, is a list of a company’s securities. Cap tables show different types of equity and help determine a company’s market value. Read our guide to learn about the different types of cap tables and mistakes to avoid.
What is a Simple Agreement for Future Equity (SAFE)?
A Simple Agreement for Future Equity (SAFE) is an agreement made between an early-stage startup and a VC or angel investor. Investors pay money now and receive shares of company stock later. Read more.
Convertible notes are short-term debt instruments oftentimes used in seed financing and venture capital. Learn more and see if they make sense for you.
Pre-Money SAFE vs. Post-Money SAFE: What’s the Difference?
Pre-money SAFEs and post-money SAFEs let investors give money to a startup for the right to future equity. But they are different in key ways. Learn more.
Startup Funding Rounds: What to Know From Seed to IPO
A funding round is an event in which investors give a startup money that enables it to continue growing. Learn the A-B-Cs in our guide for founders.
What Is a SAFT? A Fundraising Guide for Web3 Startups
Based on the SAFE, a SAFT is an equity mechanism used to convey rights in tokens prior to the completion of the tokens’ network. But is a SAFT the best way for a web3 startup to raise funds? Read on to learn more.
Planning your company's equity roadmap is important so you don't give away too much of the company in the early days.
What Is a Seed Investment Round?
A seed investment round marks the first time a startup raises significant money from outside investors. Here’s what every startup founder should know.
Basics of Employee Equity Plans
Things to consider when making an option pool.
A Framework for Token Compensation
Pulley talked with leading Web3 startups, protocols, and investors to help startups determine when to use tokens in employee compensation. Learn More.
RSU Tax 101: How Restricted Stock Units Are Taxed
Restricted Stock Units, or RSUs, are taxed at ordinary income tax rates upon vesting. Capital gains taxes may also apply at the time the stock is sold. Read more about how RSU taxes work.
What is a 409A valuation, why you need one, and how to get one
What Are Advisory Shares? A Guide for Startups
Advisory shares are a type of equity compensation that startups can give to advisors in exchange for their advice. Learn more in our guide for founders.
When to Raise Money for a Startup
Before raising money for your startup, you’ll want to establish solid traction and a business model that will attract potential investors.
In choosing whether or when to exercise stock options, tax implications play a role. But different types of stock options are taxed differently. Read more.
Startup Stock Options: A Simple Guide for Founders and Employees
Startup stock options work similarly to employee stock options at other types of companies. But startups move quickly, and so can the value of your options.
What Is a 409A Valuation? A Guide for Startup Founders
A 409A valuation is an unbiased estimation of a private company's common stock value, intended to ascertain its fair market value (FMV) or the rate at which a share would be sold in the open market. This FMV is subsequently employed to establish the pricing of employee stock options. Say ...
What Is Qualified Small-Business Stock (QSBS)?
Qualified small-business stock (QSBS) is intended to promote investment in startups by means of a powerful tax benefit. Read more to see if you qualify.
Pro Rata Rights: What Startup Founders Need To Know
Pro rata rights entitle existing investors to keep their initial ownership percentage in subsequent rounds of financing. Here’s why they matter.
What Is an Accredited Investor?
An accredited investor is an individual or entity that’s allowed to trade certain unregistered security offerings. Here’s what founders need to know.
A tear sheet is a one-page document created by a venture capitalist to summarize the key financial information about a portfolio company.
The ISO $100K limit prevents employees from taking too much advantage of the tax benefits associated with incentive stock options (ISOs).
How to Convert an LLC to a C-Corp
Converting an LLC to a C-corp is easier in some states than others, but it may be necessary if you want to attract investment and offer equity.
Contributed capital is the total amount of money and assets shareholders have invested in a company. Here’s where to find it in your balance sheet.
What Is the Section 83(b) Election? A Guide for Startup Founders
A Section 83(b) election is a short letter you send to the IRS to clarify how you want to be taxed on your equity. Learn how it can affect your tax bill.
Part I: What is Equity, and Why does it Matter? The Startup Founder's Guide to Equity
What is Equity, and Why does it Matter? | Pulley
What Is a Token Warrant? A Fundraising Guide for Web3 Startups
Token warrants are an increasingly popular fundraising tool among web3 startups. Learn about how they work and where they fit into your startup’s cap table.
What Is a Stock Warrant and How Does It Work?
A stock warrant allows the holder to buy or sell shares of stock in the issuing company at a specified price and date. Here’s why companies issue warrants.
In a liquidity event, a company’s founders and investors turn their illiquid assets into liquid assets. Examples include IPOs and acquisitions. Learn more.
What Is Share Dilution? A Complete Guide for Startups
Share dilution occurs when a company does something to increase its number of shares outstanding. Here’s how it affects existing shareholders and investors.
Phantom Stock Plans: How This Alternative to Real Equity Works
Phantom stock, otherwise known as shadow stock, is a way to compensate employees without granting them actual shares of company stock. Learn more.
The basic purpose of ASC 718 is to outline how companies should expense equity awards in their income statements. Here’s what else you should know.
Stock Warrants vs. Stock Options: What’s the Difference?
Stock warrants and options both allow the holder to buy or sell shares of stock at a specified price and date. But several key differences set them apart.
S-Corp vs. LLC: What's the Difference?
S-corp is a tax classification that may benefit qualified business entities, such as corporations and even LLCs. Here’s a full breakdown of S-corp vs. LLC.
What is Stock Vesting and What does it mean to be Vested?
Most equity grants require a time-based vesting period or set of vesting milestones in order for the employee to become a full owner of the award. Read on.
RSAs vs. RSUs: What to Know About Restricted Stock
RSAs and RSUs are types of restricted stock that work differently in terms of taxes, vesting, and other particulars. See which equity type is right for you.
SEC Rule 144 is an exemption that allows for the public resale of restricted and control securities if certain conditions are met. Read more about Rule 144.
What Is Tokenomics? How to Evaluate a Crypto Token
Tokenomics is a portmanteau of “token” and “economics.” It describes how different cryptocurrencies are valued. Learn about supply, demand, minting, and more.
A stock option is a contract that allows a person to purchase a number of shares of stock at a fixed price. Learn how employee stock options work.
Exercising Stock Options: What It Means and When To Do It
Exercising stock options means buying shares of the issuer’s common stock at the price set by the option grant agreement. Learn when and how to exercise.
What Is Venture Capital and How Does It Work?
Startup founders and other plucky entrepreneurs tend to be the face of innovation in America. This makes a good deal of sense, if by “innovation” we mean things like bold and disruptive business ideas that fuel economic growth (or create new economies altogether). But the money and support to help ...
What Is a Special Purpose Vehicle (SPV)?
ASC 820 standardizes the process of valuing assets and liabilities, so as to ensure that investments are reported at their fair value. Learn more.
Preferred Stock vs. Common Stock: What’s the Difference?
Preferred stock has a higher preference for asset distribution, but common stock may offer more upside. Learn about preferred stock vs. common stock.
What Determines a Stock Option’s Strike Price?
A stock option’s strike price is determined by the fair market value of the underlying stock. Here’s how to find FMV and set the right strike price.
What Is the Alternative Minimum Tax (AMT)?
The Alternative Minimum Tax (AMT) exists parallel to the regular income tax system. Taxpayers who earn above a certain amount may need to pay it. Read more.
Part II: The Equity Terms that Actually Matter for Founders. The Startup Founder's Guide to Equity
Learn about the must-know equity terms for founders.
What Is the Rule 701 Exemption?
Rule 701 allows qualifying private companies to avoid the expense of providing some financial disclosures. Here’s what founders and employees should know.
Restricted Stock Units (RSUs) vs. Stock Options: Which Is Better?
RSUs and stock options are two types of equity compensation popular in growing startups, but they differ in key ways. Learn more.
The Startup Founder's Guide to Seed Rounds
Everything a startup founder needs to know about fundraising.
C-Corp vs. LLC: What's the Difference?
As a startup founder weighing whether to form a C-corp vs. LLC, you’ll need to consider tax consequences, regulatory requirements, and more. Read on.
What Is ASC 820? A Guide to Measuring Fair Value
ASC 820 standardizes the process of valuing assets and liabilities, so as to ensure that investments are reported at their fair value. Learn more.
Part III: Is your cap table broken? Mistakes to avoid. The Startup Founder's Guide to Equity
Is your cap table broken? Find out how to build a strong cap table.
What Is Private Equity and How Does It Work?
Private equity is a type of financing in which money is invested into a private company. Read our guide to private equity and venture capital for founders.
How to start a company in 4 days
Learn how to get up and running in just 4 days.
What Is Form 3921? A Guide for Startups Issuing ISOs
Form 3921 is an important IRS tax form that must be filed if employees exercised Incentive Stock Options (ISOs) in the last tax year. Learn how to file it.
What Is Fair Market Value (FMV) and Why Does It Matter?
The fair market value of a private company’s stock is how much one share of that stock would be worth on the open market. Learn more about how FMV works and why it matters.
Single-Trigger vs. Double-Trigger Acceleration: What's the Difference?
Single-trigger and double-trigger acceleration happen when specific events cause the vesting schedule of an equity grant to speed up. Learn more.
What Happens to Equity in a Down Round?
As is true with any funding round, a down round can result in the dilution of equity. But it can have more significant consequences for founders. Read more.
What Are Common Vesting Schedules?
A four-year vesting schedule with a one-year cliff is the most common vesting schedule, but other options may make sense for your startup. Learn more.
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