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by scattrplot
5661 days ago
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We have an attorney and are looking for an accountant. But I wanted to check on HN as well. We built a site and get a couple thousand visitors a day. But it's not self-sustaining - if we dropped work on it, the traffic would probably drop off. So I figured $10k was fair (?) We plan to buy our founders shares, so I think (with the 83b election) our net income is zero — we paid $X for $x worth of shares. |
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Fair market value is pure hand-waiving in the beginning. Make it $400 or something. You could easily argue that the value is $400 because your position isn't at all secure (the company could easily fail).
Also, don't forget that you can contribute IP as payment for your stock. No reason to pay cash.
Your understanding of the 83b election is correct. You pay no tax until you realize a profit on your stock. The 83b lets you elect to be taxed immediately (at the same price you paid for it) which means a net gain of zero, thus no tax liability.