With special thanks to Jacob Hanna and Blake Martell for their contributions. Issuing option grants to incentivize employees, consultants and advisers is a near universal practice for start-up companies in…
A service provider is an individual or entity that provides services to another party. The relationship is typically governed by a service agreement.
An option pool is a number of shares of stock reserved for issuance to service providers of a company pursuant to options and other equity incentives.
Maybe you’ve been granting options and restricted stock from your equity incentive plan for a while now. Perhaps you and your team have developed a good process – you renew…
In a volatile market, companies may see their stock value drop significantly. This can result in employees and other service providers holding stock options that are “underwater” or “out of…
As a result of changes in US law, most newly formed companies, as well as many existing companies, will need to comply with the beneficial ownership information (BOI) reporting rule
Para leer este artículo en español, haga clic aquí When founders and entrepreneurs in Latin America start to prepare their Latam-based company to receive an investment from U.S.-based venture capital…
Many founders come to us with questions about Section 83(b) elections. They have often heard in startup circles that they need to file these, but may not understand when it makes sense to do so or what problem the Section 83(b) election solves. This article seeks to clear up some of the confusion about Section 83(b) elections.
When a company issues options to US employees, there are two types it can choose from: incentive stock options (ISOs), which qualify for special tax treatment under the United States Internal Revenue Code, and non-qualified stock options (NSOs), which do not.
UK review by Ryan Naftulin If you’re negotiating for an equity financing, bridge financing, bank financing, venture debt, or a commercial transaction for your startup, you may be asked to…
1. Experienced advisors Choose experienced advisors, including lawyers, auditors and financial consultants (if necessary), and get them involved early. Advisors who work routinely with the SEC and investment bankers –…
Very often founders raise the concern about protecting against dilution. Specifically, they are concerned that, as they grow their business and issue stock to investors, employees, and advisors, their shares,…
Nonsolicitation is an agreement in which an employee or other party agrees to refrain from encouraging another party’s employees or customers to change their relationship with the other party in a way that would disadvantage the other party.
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