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.
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.
The ISO $100K limit prevents employees from taking too much advantage of the tax benefits associated with incentive stock options (ISOs).
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.
In a liquidity event, a company’s founders and investors turn their illiquid assets into liquid assets. Examples include IPOs and acquisitions. 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.
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.
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 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.
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.
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.
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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