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Not sure why I'm unable to respond to iepathos' reply to this comment, but: >The employees would not be taxed just for receiving the stock/ownership, only once

Not sure why I'm unable to respond to iepathos' reply to this comment, but: >The employees would not be taxed just for receiving the stock/ownership, only once they sold it and made it liquid. This is incorrect; the initial grant is income and anything after that is capital gains. This is also how RSUs work.

macintux 4y ago
If you click/tap on the relative timestamp next to the comment, you’ll be taken to a dedicated page where you can reply. Same way I replied to yours.
steveklabnik 4y ago
Hacker news does not display the reply button for a bit after someone replies to you as a means of trying to blunt quick back-and-forth discussion. My sibling commentor has the workaround.
- LtdJorge 4y ago
  Oh, hi Steve!
- macintux 4y ago
  I believe in this case it’s the depth (width?) of the nesting that limits the reply-ability.
derefr 4y ago
I know there's probably a reason this isn't done, but: could you not create a new, worthless corporation; distribute its worthless shares to the new employee-owners; and then have this holding corp acquire EVGA, thus instantaneously inflating the value of the already-held equity to ~EVGA's share price?
- Arainach 4y ago
  Acquire using what assets? You're proposing fraud.
  - derefr 4y ago
    You're interpreting "acquire" as "purchase", but "acquire" just means "acquire." You, as the majority shareholders of a company, are perfectly within your rights to give your equity in the corporation you own, to another corporation, as a gift or donation. (Or, if you like, "for consideration" of $1.) And make no mistake, that's already exactly what's being proposed here, in making EVGA an employee-owned corporation: a gift of equity from the current shareholders, to a set of new shareholders. The only difference in what I'm describing is that there's a trust / holding corporation in between the givers and the recipients.
    - taneq 4y ago
      Would the shell company not then owe taxes on the value of the corporation it ‘acquired’, regardless of the dollar value of the acquisition?
    - Arainach 4y ago
      If you ever think of a financial trick to avoid taxes and say "why couldn't companies do X", the answer without fail is "because it's illegal and you aren't aware of the specific law you're violating". If this was legal all sorts of companies would do this all the time.

macintux 4y ago

If you click/tap on the relative timestamp next to the comment, you’ll be taken to a dedicated page where you can reply. Same way I replied to yours.

steveklabnik 4y ago

Hacker news does not display the reply button for a bit after someone replies to you as a means of trying to blunt quick back-and-forth discussion. My sibling commentor has the workaround.

LtdJorge 4y ago
Oh, hi Steve!
macintux 4y ago
I believe in this case it’s the depth (width?) of the nesting that limits the reply-ability.

derefr 4y ago

I know there's probably a reason this isn't done, but: could you not create a new, worthless corporation; distribute its worthless shares to the new employee-owners; and then have this holding corp acquire EVGA, thus instantaneously inflating the value of the already-held equity to ~EVGA's share price?

Arainach 4y ago
Acquire using what assets? You're proposing fraud.
- derefr 4y ago
  You're interpreting "acquire" as "purchase", but "acquire" just means "acquire." You, as the majority shareholders of a company, are perfectly within your rights to give your equity in the corporation you own, to another corporation, as a gift or donation. (Or, if you like, "for consideration" of $1.) And make no mistake, that's already exactly what's being proposed here, in making EVGA an employee-owned corporation: a gift of equity from the current shareholders, to a set of new shareholders. The only difference in what I'm describing is that there's a trust / holding corporation in between the givers and the recipients.
  - taneq 4y ago
    Would the shell company not then owe taxes on the value of the corporation it ‘acquired’, regardless of the dollar value of the acquisition?
  - Arainach 4y ago
    If you ever think of a financial trick to avoid taxes and say "why couldn't companies do X", the answer without fail is "because it's illegal and you aren't aware of the specific law you're violating". If this was legal all sorts of companies would do this all the time.