Skip to content

Compensatory Stock Options – The Tax Traps

Stock options are a popular method of providing executive compensation for start-up or young companies.  They don’t cost the company any cash and they give the employees an incentive to make the company succeed.  But stock options come in different forms, and the form you choose can have a big impact on the tax consequences…

Read More

Rule 144 : How Officers, Directors and Large Shareholders Can Navigate Affiliate Sale Requirements

Introduction The resolution of tension between two desires of a subset of powerful investors—to sell, and to govern well—is the impetus behind the affiliate sale provisions as drafted in the amended Rule 144. Rule 144 is the main avenue open to affiliates to sell un-registered securities in the public market. An “affiliate” of an issuer…

Read More

Selling Your LLC for Stock – The Tax Problem

Entrepreneurs often choose limited liability companies to incubate their businesses. An LLC offers a simple entity structure, it lets the members claim start-up losses on their own tax returns, and it eliminates the double tax imposed on a corporate structure once the venture turns profitable. But an LLC has a tax defect that its owners…

Read More
This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.