Distribute equity to co-founders from day-1 or close enough to when the company has a small value. Its very legit to justify a small value of say $1000 (total

Distribute equity to co-founders from day-1 or close enough to when the company has a small value. Its very legit to justify a small value of say $1000 (total share value) if you have no income and no investment yet without regard to when you incorporated. Equity comes with reverse vesting params. Each year, you vest 1/3 shares or tie vesting to hours worked, whatever fits...attach other params to taste, like "for-cause" termination, accelerated vesting for acquisition, etc. Bottom line is the shares are transferred prior to the company having much value...Whatever doesn't get vested gets sold back at the original purchase price (pennies to hundreds of dollars, small change)...tax problems gone. I am not a lawyer. This is a summary of what a lawyer setup for a past company of mine. This stock structure worked well and passed many rounds of due diligence from subsequent investors.