by Mike Baker | Dec 7, 2023
So, your company is being sold and you want to know whether you should exercise your stock options prior to closing. First you should confirm whether the transaction agreement (i.e., stock purchase agreement, asset purchase agreement, or merger agreement) provides...
by Mike Baker | Nov 13, 2023
For tax purposes, there are three types of equity that can be issued in a partnership or an LLC taxed as a partnership: capital interests, profits interests, and carried interests. Knowing what type of interest you own or are being granted is important, because there...
by Mike Baker | Nov 9, 2023
So, you started a business and you issued a convertible note. You know, a loan that can be repaid with the equity of your start-up. The date of the note conversion has arrived and you’re busy calculating how many shares you need to issue when suddenly you get an...
by Mike Baker | Aug 1, 2023
A parachute payment, in plain English, is a payment made to an executive when a company is sold, to help him or her land softly. A parachute payment, in tax speak, is more complicated. But here’s the gist: In the 1980’s Congress reacted to the public’s perennial...
by Mike Baker | Jul 14, 2023
I occasionally get asked whether it is possible to transfer a stock option. Listed below are relevant considerations. Does the plan allow for it? Carefully read the stock option plan and agreement to see if there are any restrictions on option transfer. There...
by Mike Baker | Jun 2, 2023
“You filed your Section 83(b) election, right?” Silence. “Right?” I gave a presentation a few years ago on how to fix a missed tax code Section 83(b) election. My phone started ringing the moment I returned to my office. Turns out, these get missed. Apparently,...
