Startup Compensation: Founders, Don't Forget to Pay Yourselves (and Others)
By Dennis Kasimov and Joe Wallin In the early days of a startup, it is common for founders to not pay themselves any cash compensation.
Legal Updates
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Secondary Sales and An Investor Covenant You Don't Want To Miss
If you are investing in early stage companies, there are certain deal terms you want.
Incentive Stock Options: Post-Termination of Service Exercise Periods
The 90-day post termination of employment exercise period for stock options is under attack. A lot of companies are moving away from 90 days.
ISOs: Annual Tax Reporting Requirement
If your company has had employees exercise incentive stock options ("ISOs"), you are required to report certain information to the IRS and the optionee about the exercise.
Immediately Exercisable ISOs: The Problems
A lot of companies, including a large portion of Silicon Valley startups, grant new hires immediately exercisable ISOs (incentive stock options) with the expectation that many will exercise their...
The "Pre-Existing, Substantive Relationship"
The SEC recently issued guidance on what constitutes a "pre-existing, substantive relationship." The guidance is helpful for companies raising money for a number of reasons.