Questions tagged [start-up]

A startup company or startup or start-up is an entrepreneurial venture or a new business in the form of a company, a partnership or temporary organization designed to search for a repeatable and scalable business model.

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1answer
421 views

Comparing stock purchase plans in offer letter

I have received two job offers both containing stock purchase options. Unfortunately, I have no clue what they mean and how to compare one with another. Company A: It will be recommended at the first ...
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1answer
160 views

Profiting from the PWC Money Tree

I'll start off by saying I have very little investment experience. So I'd like this to be more of a discussion than a typical question/answer post. Today I learned about the Pricewaterhouse Coopers ...
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2answers
158 views

Do I need an accountant when starting a business? [NYC]

My wife and I are going to pull the trigger in NYC in the next coming months. I'm attending a few SBA classes in my area and whatnot. I consider myself very good with money in general, and I ...
2
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1answer
117 views

100% Ownership and 30% profit to sale director

I am seeking understanding. I 100% own a new service-based tech company. My business is registered as an LLC. I am about to launch and I seek to make sales, yet I don't have the resources to pay staff ...
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1answer
100 views

What should I do with my stock options?

First, assume I know all the regular disclaimers about seeking professional tax planning/CPA help. I have, but want to balance that with many second opinions :) I have the following vested, ...
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1answer
6k views

How to offer financing to customers (Used Car Dealership)? [closed]

I'm starting a used car dealership and I would like to offer financing option as a form of payment to my customers (Lately many potentials buyers ask for such). I have few concerns that I need to ...
4
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2answers
456 views

Is it possible to make money off of a private company?

I have been made aware of a UK company that I think will be extremely profitable in the next year or two. It is currently privately held and they compete for market share with Intel and NVidia. Is ...
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1answer
49 views

Moving my online only business to the USA?

I'm looking to form or purchase a US corporation (whichever is easiest/cheapest) (I'm thinking in Delaware) for the benefits of doing business as a US corporation. This corporation will be used to ...
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2answers
209 views

30% share in business

I currently work at a company that has one director (which is the only other person in the company at the moment). The business is growing quite well, and I have been offered 30% shares over a three ...
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2answers
350 views

Salary raise: before or after the spin-off / investment?

I have not much experience in dealing with shares, startups and spin-offs and hope for some advice. I work for a company as an "intrapreneur" for my own project but for a salary like a normal employee....
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0answers
50 views

83B with for contribution of stock with a low basis in a 721 transaction with forfeiture

I have some stock in a small startup (that I work for) that as part of a 721 transaction is being "acquired" by an LLC. Let's say my basis in the stock is $10 and I am to receive $1000 share of the ...
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1answer
121 views

startup, renting an expensive house, founders, taxation

A startup has 4 people. The startup rents a huge, luxurious house (10k / month rent). The founders live there. At this point, can the startup deduct the rent of the house (as an business expense ...
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2answers
180 views

Perform exercise-and-hold AND exercise-and-sell-to-cover?

Suppose I was granted 100,000 shares of ISO stock in a startup in the US with a strike price of $1/share and current valuate of $1.25/share. These shares are 100% vested when I leave the company and I ...
2
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1answer
161 views

When does the clock start for capital gains treatment on an angel investment?

I made an investment in a startup company last year. I sent the wire transfer on August 4. I have a legal document from the company entitling me to X number of shares on September 1, but my shares ...
1
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1answer
98 views

What are the costs to maintain an Inc? [closed]

I am wanting to form an Inc for an internet website like Facebook or Twitter and I am running it out of my home for now. I would want to register my startup in the state of Delaware and I am in ...
2
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1answer
38 views

Generic Private Stock Purchase Agreement - Establishing Basis With IRS

I worked with another guy on a startup in 2015 for about a month. I am no longer at the startup but I agreed to fork over my intellectual property developed during that time in exchange for 10,000 ...
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1answer
81 views

What responsibility does an acquiring company have?

I am a stockholder of a company that is being acquired. The parent company has never reached out to me. What legal responsibility does the parent company have toward the shareholders of the child ...
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2answers
318 views

Should I accept shares as payment?

My possible future employer offered to pay me in shares of the startup I would join. He dropped sentences like "brutto equals netto" and "We can pay you more in shares than in cash". Obviously there ...
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4answers
245 views

Why should a company go public?

For someone who holds stock in a privately held startup (through exercised employee options) is it preferable to see the company aiming to go public so that stock can be sold on the open market? It ...
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9answers
34k views

If one owns 75% of company shares, does that mean that he would have to take upon himself 75% of the company's expenses?

There are two founders in a new company that does not have any profit yet and is financed out of their own pockets. One founder owns of 75% shares, and the other one - 25%. There is a need to spend a ...
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1answer
228 views

Professional tax for employees - startup in India

If I have online business with one employee who will be working from home, do I need to deduct professional tax as applicable from his salary and submit or I can avoid professional taxes for the ...
2
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1answer
206 views

RSU or regular stock awards

I am a new "key employee" (VP level) with a startup biotechnogy company. In the letter of offer the company is awarding stock options. Is it better to get RSUs or regular stock awards or both at ...
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2answers
296 views

How to find companies' Form 10-K annual reports? Why might a company not file one?

I am trying to find 10-K forms for some companies, but couldn't find what I was looking for. How would I find Form 10-K for any of these start-ups below? I already tried http://www.sec.gov. ...
2
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1answer
118 views

Transfer of Indian rupee account funds to UAE to open business

How can I transfer from my rupee account in India a sum of Rupees 25 lacs to my UAE bank account, for investment purposes for starting my own business.
2
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1answer
184 views

Is US citizenship and/or residence requirement for “accredited investor” status?

I've been reading about founders fund, and i'm wondering (since this is not listed anywhere in the documentation) - is it possible for a non-US resident or citizen to participate?
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1answer
121 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. ...
3
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1answer
84 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 ...
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2answers
3k 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 ...
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1answer
76 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
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2answers
843 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 ...
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1answer
123 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?
5
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2answers
2k 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 ...
31
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6answers
7k 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 ...
25
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7answers
7k 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, ...
5
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2answers
10k 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 ...
2
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1answer
684 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
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1answer
279 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 ...
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2answers
278 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 ...
10
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1answer
2k 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
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2answers
853 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
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3answers
80 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
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1answer
4k 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? ...
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2answers
4k 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 ...
4
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1answer
254 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?
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1answer
10k 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 ...
18
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2answers
3k 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
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2answers
429 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 option,...
2
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1answer
1k 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 ...
1
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1answer
177 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
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1answer
229 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 ...