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Talk to a tax accountant now - before you take any stock/options. You need to understand the tax and cash flow consequences of options. If you don't plan this r
by damoncali 15y ago
Talk to a tax accountant now - before you take any stock/options. You need to understand the tax and cash flow consequences of options. If you don't plan this right, you can wind up with a huge tax bill and no money to pay it with. To make things worse, if the stock then goes to zero, you'll still have to pay the taxes, even though you never saw a cent.
Negotiate vesting. Negotiate triggers (what happens if you get acquired/fired/relocated). Negotiate the length of time you have to exercise options after you no longer work there.
As for how much? As much as you can get. It's that simple.
- robfitz 15y agoAgreed that options can be a bit of a tax chore. Since you're on board before the incorporation, ideally you can just have your shares allocated in the same way as the founders do, for a value of a ten-thousandth of a cent (or whatever) per share. Exit triggers don't apply to core engineers. They exist for roles which help you get to an exit situation but don't have a role to play within the future owner. Relocation as a trigger might be worth considering though. And no, don't negotiate for as much as you can get =/.
- damoncali 15y agoAnd no, don't negotiate for as much as you can get =/. Why not?
- planckscnst 15y agoHe outlined it in the first paragraph of his answer.
- damoncali 15y agoThat seems like a rather academic view of the world. I'll take my chances asking for as much as I can get from people who are smart enough to know the value of what they're offering.