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1
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1answer
57 views

Where should I start my LLC?

I want to release an iPhone app to the App Store and want to put my company name as the app's "seller" field. I was thinking of starting an LLC because I'm working alone and want to hire a developer. ...
2
votes
0answers
26 views

Transfer of stock of non-public company after vesting

Suppose an employee of a non-public company has "some" stock options. Can that person, after vesting, generally transfer the ownership of some of those (exercised) shares to another party? I want to ...
10
votes
2answers
2k views

Can my US company buy my foreign company for $1 USD?

I'm a non-US resident and I'm the owner of a Delaware C-corp Inc. I also own a company (equivalent to LLC) in the EU. Although I could "sell" or transfer ownership of my EU company to my US company ...
1
vote
1answer
23 views

Does 83(b) cause a tax liability when exchanging startup stock for public stock?

I sold a startup to a public company. I filed an 83b at startup inception (nominal value). The terms of the sale were such that I must vest the sale proceeds over 4 years and will be realized as ...
2
votes
1answer
56 views

What are the tax consequences of ISO exercising with an 83B election after the stocks FMV has gone up?

I came across a lot of posts that talk about 83B and ISO vesting but still could not answer questions specific to my situation. I am trying to understand tax implications with exercising in the ...
1
vote
1answer
55 views

What is the best way to invest in US stocks from India?

Being an Indian citizen, I would like to trade in US stock markets (i.e. in NASDAQ and NYSE) Is that possible?
2
votes
2answers
302 views

How to invest in drones?

I expect the drones will be in the nearby future something very usual to our daily environment. Therefore I am wondering what is the best way to be invested into drones? Are there any trusts/funds to ...
28
votes
6answers
4k views

How does start-up equity end up paying off?

Let's say I invest in a startup, either with money, work, etc. In return I am given a 5% stake in the company, but no salary, benefits, etc. When do I see money related to that 5%? Is it only when ...
22
votes
7answers
6k views

Start a business or remain an employee?

I am a web programmer with a family and all the accompanying expenses. I am trying to decide whether to: develop my dream start-up (which will take at least 7 months) with no guarantee of success, ...
1
vote
1answer
287 views

Are companies like EquityZen legitimate and useful?

There are a list of companies claiming to provide liquidation for employees who have ISOs in private startups but don't have the means to exercise them (because of the ridiculous amount of phantom tax ...
1
vote
1answer
131 views

Shares in Chinese startup company

let me first explain my situation before asking my question. I use to work in research at university overseas on a project that has been spun off in a startup in China by my former supervisor who is ...
2
votes
1answer
180 views

How can I reduce my tax liability on proceeds from the sale of a company?

My (Canadian) company is about to be sold and as one of the first employees I'm expecting a significant payout from options (e.g. $2M !). That sounds like an incredible amount of money, but this is ...
-1
votes
2answers
169 views

Selling units/shares in my startup to my Roth IRA

Since I can't transfer/gift shares directly to my Roth IRA, what's the most tax-efficient way for my Roth IRA to take ownership of as many units of my startup as possible? Is this even possible? If ...
8
votes
1answer
584 views

If a startup receives investment money, does the startup founder/owner actually gain anything?

I am a bit confused on this topic. You hear a lot of stories now on how startup X received X million dollar from X VC firm. But I'm unsure whether the owners of the startup are actually 'making money' ...
0
votes
0answers
24 views

Recommend a book on venture capital lingo (pref UK)

What book would you recommend on brushing up my financial lingo for terms such as: ordinary shares volatility pre-emptive rights exit change of control etc. Many thanks, Vlad
0
votes
2answers
276 views

Early Exercise and 83(b) Election

I am a long-term employee at a growing start up. I have a significant amount of non-qualified stock options, at very low strike price, fully vested and can be exercised at any time.(approx 1-2% ...
0
votes
3answers
59 views

Share holder or company getting the money when investor invests?

Let's say I have a company and I own 100 % of it. An investor wants to invest $1000 and gets 10 % of the company, I now own 90 % of the comopany. To who pertains the $1000 - to me or to the company? ...
2
votes
1answer
336 views

How does a Non US citizen gain SEC Accredited Investor Status?

I am interested in investing in Startups via Angellist or other similar programs. How do Companies and individuals not based in the United States become a qualified Accredited Investor by the SEC? ...
1
vote
2answers
599 views

Should I have separate business and personal accounts for my start up?

I have a personal active PayPal account. I am about to start a small web development company. I have googled to learn about making and receiving on line payments like if I want to register a domain ...
3
votes
1answer
170 views

How did Bloomberg keep such a high share of his company?

From internet sources, Michael Bloomberg owns 90% of Bloomberg L.P., which is an insanely high percentage. How did he manage to create such a major company while retaining almost complete ownership?
3
votes
1answer
2k views

Claiming business expenses for a business with no income

I'm currently working on a web application on the side to turn into a business one day. I probably spend upwards of 20-30 hours a week working on it (I would like to spend more but not ready to quit ...
14
votes
2answers
2k views

As an employee, when is it inappropriate to request to see your young/startup company's financial statements?

If you work for a young company, equity in the form of restricted stock or options is often a form of compensation and a way to keep you aligned with the company's goals. But as a new employee you ...
2
votes
2answers
183 views

What ways can an employee keep the upside of stock options after leaving?

Suppose that you work at some private company and that company offers some stock options to you as part of employment. For the sake of discussion, suppose they offer 100 000 options at $0.50 an ...
2
votes
1answer
760 views

When should I exercise my startup stock options? How would it be taxed?

Let's say I'm an employee at a startup where I own fully vested stock options. Scenario 1 I have not exercised my stock options and my startup was bought. Do I still get to exercise my options? The ...
0
votes
1answer
108 views

Creating a personal company [closed]

I'm developing several software which will be (I hope) really useful and will find it's customers, I'm doing it all by myself. For graphical works etc. I hire freelance designers online, but ...
3
votes
1answer
171 views

When offered options as part of a package from a 2 year old startup, how is the strike price derived?

When startups hire new senior people I understand that it is common practice to offer options, often over a period of 4 years. However, the actual value of these options will depend highly on the ...
3
votes
1answer
856 views

How can someone invest in areas that require you to be an accredited investor [without qualifying as an accredited investor]?

I have some money that I would like to invest. I have some money invested in the stock market and I have found some other places I'd like to invest as well, but it seems that many places require that ...
12
votes
1answer
380 views

Taxes: what do I do about getting a w2 from a startup that has gone belly up in the US?

Last year (2012) I worked for a startup through May before moving on. Between May and now (March 2013) I have moved twice. Neither time did I think to update the old employer so that they could send ...
0
votes
1answer
203 views

83(b) and long term capital gain

I have been in company A for ~10 months and I have been granted X amount of ISOs (Incentive Stock Options). Though, none of those ISOs have vested yet. Now company B just bought company A (deal is ...
5
votes
2answers
211 views

Is this formula accurate for weighing the difference between an S-Corp and LLC?

I have been doing much research before deciding on a S-Corp or LLC for an online start-up (2 people, software as a service). I've read lots of explanations of the two and their differences and I've ...
3
votes
1answer
445 views

Can I account for start-up costs that occur before incorporation?

I'm starting an LLC with a couple of partners. But before we incorporate we need to finalize a partnership agreement. I would like to initiate a few time-sensitive things such as a patent search ...
6
votes
1answer
250 views

What is a good asset allocation for a 24 year old planning to do a startup?

I am planning to quit my current job and do a tech startup. How should I invest my savings of ~$210K? Assume that a fixed amount X = $2000 gets withdrawn per month and the aim is to maximize the ...
2
votes
2answers
203 views

What is the best way for me to invest my money into my own startup?

I've started a company with a friend, and we're looking to find out how to transfer some of our money into the company. Several sources suggest that, since we're the only owners so far and there's no ...
5
votes
2answers
131 views

How to transfer personal earnings to a company

Say I work in the US and am using my personal earnings to bootstrap a small company. What is the proper way to transfer my personal wages into the company account? Do I just cut my company a check? ...
12
votes
5answers
3k views

What should I look at before investing in a start-up?

A friend from college (and middle school and elementary school, for that matter) has talked to me a little about his company, a start-up working on technology tangentially related to Internet ...