Startup Equity 101: How to exercise your stock options AND pay zero to minimal taxes
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- čas přidán 25. 08. 2024
- #startupequity #stockoptions #equitycompensation
When I first started working at a startup, I knew very little about equity and stock options. I embarked on this journey to extensively research how to value, negotiate, and exercise my stock options, and even after that, I was still confused!
There were a lot of new terms that I had to learn that I've never even heard of before! (For example, exercise does not mean working out. Maybe they taught us this in school and I wasn't paying attention.) It wasn't until I made a few mistakes did I figure out ways to take advantage of my stock options while minimizing my tax liability.
In this video, I share what I've learned so that you can take advantage of your equity and avoid tax triggers that have previously made people bankrupt!
Watch until the end where I share what I've realized about the ZERO-SUM-GAME on my pursuit to understanding equity.
Disclaimer: This is not financial advice. Please consult your financial and tax advisor.
If you want to learn more, the Holloway guide is a great resource that I used as a reference.
www.holloway.c...
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This is exactly what I was looking for, great video. Most "exercise options early" videos were all about like call options on Robinhood 😂
I am on my 5th startup now but first time as an executive and my FMV is well under $0.01 so hoping to exercise them early at that rate and file a 53(b). My last company was bought by Cisco and I got smashed by taxes when it happened.
Thank you soooooo much for this video!
You're welcome! Hope it's helpful!
This video is amazing -- thank you!!
I'm so glad it's helpful. You're welcome!!
You need to be more clear on what the company was giving you : the company is not giving you SHARES, they are giving you the right to buy shares "AT A SPECIFIC SET PRICE THAT WILL NOT GO UP OVER TIME" jsut add that and it will be PERFECT! 🙂
They were giving me the right to buy shares, yes. Thank you for pointing that out.
@@LeDammm My point was actually about "At a specific Price, that will not increase" That's the part you left out, I know you understood the part that you said.
Le You are so beautiful 😍 its hard to follow the topic being discussed, i pay more to your face expression than what i should be to what is taught.(i am a terrible student) i am interested in your statement about "not an official stock holder"until I actually vest into the stock"Q? What about ownership of a S-Corp? My taxes are a mess...help?😢