3 ms·

"Founder" is not a title you can add casually under US law. It's determined at the time of incorporation and stock issuance. QSBS, and other legal structures,

"Founder" is not a title you can add casually under US law. It's determined at the time of incorporation and stock issuance. QSBS, and other legal structures, do not allow transferability of "Founder" to follow-on Investors and employees.

Kranar 4y ago
This is completely untrue and it's very unfortunate that you'd make such an easy to verify false statement with such certainty and reflects very poorly on the overall quality of discussion.
navaneethpk 4y ago
I might be wrong here but "Founder" is just a title and it has nothing to do with law or investors. Adding another "Director"/"Officer" requires some paperwork though.
- bfung 4y ago
  You’re correct. I’m not a lawyer, but went through doing own startup: It varies in incorporation requirements by state, but most only require 2 titles positions - a President and a Treasurer (the “Officers”) Adding or removing a Director, as in “Board of Directors”, requires amendment to the Corporation’s bylaws, which should state how many seats there are. Aside from those titles/roles, all the “C” prefixed titles are made up. Usually, one C level person is the President, another the treasurer. Co-founders are usually on the board of directors. Many times, a single person can be on the board, a co-founder, and ceo.
Ozzie_osman 4y ago
I don't think QSBS has anything to do with founder titles specifically, but I'd love to be corrected. Anyone who with stock that is QSBS eligible gets the exemption, whether they are a founder, investor, employee, etc, and it's more about the eligibility (ie you paid for the stock, you didn't acquire it on a secondary transaction, the business was <50M, etc). Whether your title is founder or not doesn't really matter.
- hackitup7 4y ago
  That's correct as far as I know. Employees do need to exercise any relevant stock options to start the holding period, however.

Kranar 4y ago

This is completely untrue and it's very unfortunate that you'd make such an easy to verify false statement with such certainty and reflects very poorly on the overall quality of discussion.

navaneethpk 4y ago

I might be wrong here but "Founder" is just a title and it has nothing to do with law or investors. Adding another "Director"/"Officer" requires some paperwork though.

bfung 4y ago
You’re correct. I’m not a lawyer, but went through doing own startup: It varies in incorporation requirements by state, but most only require 2 titles positions - a President and a Treasurer (the “Officers”) Adding or removing a Director, as in “Board of Directors”, requires amendment to the Corporation’s bylaws, which should state how many seats there are. Aside from those titles/roles, all the “C” prefixed titles are made up. Usually, one C level person is the President, another the treasurer. Co-founders are usually on the board of directors. Many times, a single person can be on the board, a co-founder, and ceo.

Ozzie_osman 4y ago

I don't think QSBS has anything to do with founder titles specifically, but I'd love to be corrected. Anyone who with stock that is QSBS eligible gets the exemption, whether they are a founder, investor, employee, etc, and it's more about the eligibility (ie you paid for the stock, you didn't acquire it on a secondary transaction, the business was <50M, etc). Whether your title is founder or not doesn't really matter.

hackitup7 4y ago
That's correct as far as I know. Employees do need to exercise any relevant stock options to start the holding period, however.