by Mike Baker | Aug 1, 2021
Myth: You must grant stock options with a fair market value exercise price. Truth: A nonstatutory stock option can be granted with a discount exercise price if: The stock option is fixed-exercise; or The stock option meets the independent contractor exception. Most...
by Mike Baker | Jul 1, 2021
Section 409A is a highly technical section of the tax code that slaps a 20% tax penalty onto improperly structured deferred compensation. But there is a hack. You can avoid the penalty by adding these 10 magic words to the contract… “, subject to [his/her] continuous...
by Mike Baker | Jun 1, 2021
You have a brilliant business idea. And you can see yourself as a millionaire. But sadly, you’re frozen by the very first decision you have to make: Do you form the company as an S corp, C corp, or LLC? Today’s your lucky day. I’ll make it easy for you. If you plan on...
by Mike Baker | May 1, 2021
When selling an S corporation, an increasingly common transaction structure is the so-called “F” reorg QSub drop. Its popularity is tied to the fact that it can provide each party in the transaction a desired tax benefit. What tax benefit does a buyer want when...
by Mike Baker | Mar 27, 2020
On March 27, 2020, President Trump signed the third – and most comprehensive – coronavirus relief package into law. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was passed by both the House of Representatives and the Senate with broad...
by Mike Baker | Mar 7, 2020
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...
