Baker Tax Law

I am frequently asked whether a new tax code Section 83(b) election is necessary when vested stock is subjected to new vesting restrictions. This revesting most often occurs at a financing. The investors request the revesting to ensure that the founders stick around....

So, your company has generated tokens, presumably offshore, and you want to use them to compensate employees. Common ways to do so include: Restricted Tokens Tokens can be sold or awarded directly to employees. Because the employee will either need to pay for the...

Qualified small business stock (“QSBS”) is a special type of stock that can result in 0% federal tax on the gain (up to a cap) from a sale if held more than 5 years. That is the good news. The bad news is that a company can accidentally disqualify otherwise eligible...

Updated. Originally posted May 13, 2022  Can I Use a Self-Directed Roth IRA to Fund My Start-Up? I was asked this question by three different clients yesterday. Ever since it was revealed that Peter Thiel reportedly accumulated billions of dollars inside his Roth IRA,...

May 2026 Update On May 20, 2026, Treasury Assistant Secretary for Tax Policy Kenneth Kies said during a conference in Washington, D.C., that the IRS is preparing guidance on the expanded exemption aimed at curbing what he described as stacking abuse. “Let me just warn...

So, you accidentally granted one or more discount stock options. Now what? As quick background, a discount stock option has an exercise price below the fair market value of the underlying stock on the date of grant.[1] For whatever reason, Congress doesn’t like this...