Page 3
What a convertible note is for startups: debt now that converts to equity later—principal, interest, maturity, valuation cap, discount, conversion math, securities-law basics, and tax/QSBS timing.
ISOs and NSOs have fundamentally different tax treatment. Understanding those differences — including the AMT trap, the $100K limit, and post-termination rules — is essential for founders and employees.
Founder vesting explained: four years with a one-year cliff, ownership versus vesting, repurchase terms, 83(b) elections, and what happens at departure or acquisition.
Understand common-stock valuation, the three 409A safe harbors, when to update, and why an independent appraisal does not guarantee every option is exempt.
SAFEs are widely used in U.S. pre-seed and seed financings, but “simple” does not mean uncomplicated. Learn how a SAFE works as a security and contractual right, what conversion and payout terms do, and what to model before you sign.
Governor Ferguson signed ESHB 1155 on March 23, 2026. The broader noncompete ban begins June 30, 2027; until then the 2019 income-threshold and garden-leave framework remains in effect. Here’s what changed and what you must do.
January is prime time for compliance slip-ups that quietly turn into bigger problems later—loss of good standing, IRS penalties, or unpleasant surprises during fundraising.
Golden-parachute taxes: the 20% excise tax, compensation base, accelerated-equity valuation, shareholder-vote conditions and worked cash-bonus examples.
A proposal to make 83(b) treatment automatic for suitable restricted-stock transfers, with an informed opt-out and protection against unexpected current tax.
QSBS requires a qualifying domestic C corporation for federal tax purposes. Learn how S status, LLC tax elections, and conversions affect eligibility.
