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It's so they can make the employees pay the taxes later, rather than paying taxes up front as most companies do for RSUs. As an employee, you want RSUs, not op
by roguecoder 8y ago
It's so they can make the employees pay the taxes later, rather than paying taxes up front as most companies do for RSUs.
As an employee, you want RSUs, not options.
- matthewowen 8y agoI general, no, you don't. Your startup RSUs won't trigger until there's a liquidity event, at which point _you_ are responsible for taxes. The RSU value will be taxable as ordinary income. With options, the "bargain element" is only taxable as AMT income. For options for early stage companies, this improved tax treatment _generally_ makes them better.