<aside> 💡 Please consult an expert, this stuff is really, really important.

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Equity

Equity is a major incentive for employees who are joining a startup early, when there is more risk and potentially lower salary. It’s important for the business owner to set the company up for success. On the other hand, it’s important for employees to know when to exercise options, how to get paid out, how much they’ll make, and how much they’ll get taxed.

The Equity Basics

83B

How do I manage my company’s equity?

409A Valuations

Additional resources to learn more about equity

Equity as Compensation

Who should I offer equity to?

How to split equity amongst Founders?

What is founders’ preferred stock (FF preferred)?

Is founders’ preferred stock right for me?

How much equity should I offer Advisors?

How much equity should I offer Investors?

How much equity should I offer employees?

Understanding equity as a component of an offer

Are there tax consequences tied to employee equity?