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Not sure I understand vesting in general, but I will do some research to have the questions you have here answered. Thanks!
by hellocoins 16y ago
Not sure I understand vesting in general, but I will do some research to have the questions you have here answered. Thanks!
- jaltucher 16y agoVesting means that you get your shares over time. there's several things that can be happening in your deal: 1) you get your shares right away but they are restricted until you put in your 1000 hrs (this might be best because it starts the long-term cap gains clock ticking) 2) you get your shares in 1000 hrs (i dont like this. what if he raises money at a 20mm valuation. you might have a serious tax implication). This is a form of vesting. 3) the 1000 hours happen and then you get your shares over time (vesting) after that 4) all of the above, but you get options instead of shares. Not sure if I like this either but depends. But all the other things I mention (anti-dilution rights, non-competes, change of control, change of responsibilities, etc) are all very important. you can't do a deal without everything spelled out.
- chopsueyar 16y agoCan you provide a bit more info on the tax implications of #1 versus #2?
- jaltucher 16y agoIf the company raises money 900 work hours from now at $1 per share and they have 20 million shares then 1% of the company is worth $200,000 then. If he is granted the shares then he has to pay taxes on that (he can get away with a discount to that but he still has to pay taxes of some sort). Right now the shares are probably worth zero. So if he's granted stock now there are no tax implications.