When you receive equity compensation in the form of restricted stock, non-qualified stock options, or incentive stock options, you may have the opportunity to make an 83(b)…
83(b) Elections: What they are, and What You Need to Know
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Category: Pre-IPO / Private Stock
What to Expect When Your Company IPOs and How to Prepare for a Liquidity Event
Being part of an initial public offering, or IPO, is an exciting time. This is when a private company goes through the process of getting listed on a publicly-traded exchange. Where shareholders may have previously only been able to buy or sell the company’s equity in private deals (if allowed by the company), an IPO allows for company stock to be bought, sold, or traded…
How to Evaluate an Employee Stock Purchase Plan from a Recent IPO Company
Access to an employee stock purchase plan that offers a lookback provision and a discount is often a great benefit for employees. If you can afford to contribute, these two features may allow you to.
How to Consider Equity Compensation When You Work for a Private Company
Many private companies offer equity compensation in the form of employee stock options. For employers, offering this benefit is one way to attract and retain talent. Equity compensation can create a shared interest in the company’s overall success. If the company does...
Understanding the 83(b) Election for Non-Qualified Stock Options
If you have non-qualified stock options, you’ve likely spent time researching when and how you’ll face taxes for them. As a general rule, you will be subject to ordinary income tax on the profit you make when you exercise non-qualified options. Being taxed when you...
Six Things to Know About Pre-IPO Incentive Stock Options
The choice of when to exercise your incentive stock options can be a difficult one, with serious implications for financial planning and taxes. When your company is still pre-IPO, that opens up an entirely separate set of concerns that you may need to be aware of. The issues associated with pre-IPO incentive stock options (ISOs) are particularly relevant now, as early-stage companies increasingly find private funding sources and delay the date of their IPO. As the length of time between startup and IPO increases, more and more employees are facing the question of the costs and benefits of pre-IPO ISO exercise.
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Hi, I'm Daniel Zajac, CFP®, EA
I write about equity compensation and employee stock options in a way that is easy to understand.
NEW! The Ultimate Guide to Equity Compensation
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