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Excellent point, Chris. Founders should consider giving out RSUs instead of options for this reason. My understanding is that stock options do not count as Qual
by aveshcsingh 9y ago
Excellent point, Chris. Founders should consider giving out RSUs instead of options for this reason. My understanding is that stock options do not count as Qualified Small Business Stock, however.
- CalChris 9y agoYou have to exercise that option first and then you have stock. That it is subject to a repurchase agreement (vesting) is a separate matter. QSBS is hard to achieve but the reward is much greater than 83b. Basically formation needs to be engineered with QSBS in mind. And you have to be early, pre-$50M. And ....