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and if you live in a jurisdiction that taxes income, and does it higher than on capital gains... and has 83b elections such as in the u.s., one can factor that
by adrianscott 16y ago
and if you live in a jurisdiction that taxes income, and does it higher than on capital gains... and has 83b elections such as in the u.s., one can factor that into a valuation of opportunity cost... (yearly income taxation versus compounded growth resulting in one-time capital gain taxation)
- xster 16y agoIn terms of tax, I believe I can be offered "founder's shares", ie shares that have no value (from the taxman's perspective) that vests over a period. Therefore, my income tax for receiving stocks should be minimal. Canada has a 750k tax exemption from capital gain from owning small businesses so tax is not my top worry if it is done properly
- adrianscott 16y agothen 20K of equity can be better from a tax perspective for you, as 30K in income after tax would be 20K or less i imagine right away. at the same time, it's really worth digging into and understand what they mean by whatever equity they're offering, and how they would get to whatever valuation that means. also what % of the company it is that they're offering, what stage is the company at etc., to form your own estimation of valuation of the company etc. looking at % and yr estimation of valuation can be more important than what they're saying... good luck!