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Modification of Option Vesting

Modification of Option Vesting

Every year I get a new hard copy set of income tax regulations. These come in four phone book-size volumes. I probably look forward to getting these more than I should—they come at the end of December, and for a tax guy like me it always feels like a belated Christmas...
Secondary Purchase plus Exchange

Secondary Purchase plus Exchange

The following method for providing founders liquidity has been very popular during the last three years: An investor buys common stock from founders during a preferred financing at the preferred price. Those same common shares are then magically exchanged by the...
2023 Tax Rates

2023 Tax Rates

The tax rates and deduction amounts for the 2023 calendar year are listed below. Federal ordinary income tax rates Single taxpayers If taxable income is between: The tax is:                               0 – 11,000 10% of taxable income                  11,000 –...
Do Not Immediately Early-Exercise an ISO

Do Not Immediately Early-Exercise an ISO

Someone just emailed me the following question (paraphrased): “I have a private company client who has approved a new hire grant to their new CEO that includes early exercise. The total exercise price of the option grant is $180,000 and the CEO is planning to...
Future Token Contracts

Future Token Contracts

Let me start with the bad news: I have been persuaded that future token contracts likely do not work. But let’s back up. If your offshore entity[1] has not yet minted tokens but you want to get something into the hands of service providers, historically you have...