The overtime rule enacted via executive order by President Obama likely won’t see the light of day. The new rule could have put many small businesses and startups in difficulty by widely increasing the number of employees covered by the overtime regulation. Days before the rule was supposed to go…
The House of Representatives passed a bill that would allow startup employees to defer the tax owed on exercised stock options for up to seven years. The bill, H.R. 5719: Empowering Employees through Stock Ownership Act, would go a long way to support the startup ecosystem by making it easier for employees of private companies to hold on to valuable but illiquid stock.
Founders are often surprised to see how complex it is to enable their employees to obtain stock options. The first step is understanding the difference between the two widely different type of stock options: The Incentive Stock Option (ISO) and the Nonqualified Stock Option (NSO).
Few decisions are as important as choosing the right entity for your new startup. This post explores the factors that matter most when making this decision.