|
|
|
|
|
|
by yellow_lead
1159 days ago
|
|
|
Is there any way a pre-IPO startup can give equity without imposing a tax burden on employees? For instance, if an employees options vest, I believe they are required to pay taxes on the computed value of the shares. But in i.e a pre-seed company, there may be further dilution, so you end up paying tax on something that is lost in the end. |
|
|
Answer: ISOs are one way. Although I'd clarify that employees will pay tax, it's just a matter of when.
Learn about ISOs here: https://turbotax.intuit.com/tax-tips/investments-and-taxes/i...