2 ms·
Ask HN: Help with acqhire from EU by US company?
I'm a european single founder working on a niche startup and have received an acqhire offer from a US company. The package is vested equity (a mix of shares and options), no cash and is conditioned by my employment in the EU subsidiary of the company (different country than I currently live in).
I'm not sure if this is a good offer or not and this is largely conditioned by what taxes apply as I might not be able to pay them. My work contract would be with the EU subsidiary of the company, but the equity is held and transfered by the US company.
Is receiving equity through a vesting program a taxable event in the US? Is my situation any different from the typical vesting situation from a taxes point of view?
In my current country of residence this is not taxable and there is also a double-tax treaty with the US. Would it make sense to set up a holding company here and use it for equity transfer or do things really not work that way?
Any thoughts / advice would be appreciated!
- PaulHoule 10y agoCash rules everything around me.
- niccolop 10y agoFirstly, have you spoken to a lawyer/accountant? This is complicated enough to justify a conversation. Secondly, what type of options? IRS has a short piece about taxation on options here: https://www.irs.gov/taxtopics/tc427.html https://www.irs.gov/taxtopics/tc427.html
- throwaway_asker 10y agoThanks for the link. Not sure about the type of option from that classification, it wasn't mentioned in the offer. So far I've only talked to local lawyers and accountants. Will consider contacting a US counterpart.
- niccolop 10y agoI would definitely recommend finding someone familiar with US stuff, preferably in your country. If you are in the UK, my email is in my HN details, and I can introduce you to someone. Also, figure out what type of options, it matters.
- mtmail 10y agoWhat is the US company buying? Do you have a EU company they're buying? Or is the package you describe an employment only while they don't really care about any products you created? Who is receiving the shares&options, you a person, or you a company?
- throwaway_asker 10y agoI do have a EU company and the offer is for the IP it currently holds. They want the product I've created and me to integrate and develop it further. The domain is quite niche, it would not be easy for them to find someone else to work on this product. Reception of the shares & options is not yet settled, it can be either way.
- ffggvv 10y agoIt's nice to have EU companies, why selling it to an USA one? If it's niche and they have a hard time to employee someone else to develop it then go on with your company.
- chatmasta 10y agoAre the options/shares for stock in the EU subsidiary of the US company, or for stock in the US company itself? Regardless, this is obviously a very complicated situation... Talk to a lawyer. And maybe try to negotiate some cash into the buyout so you can pay the legal fees.