Tuesday, August 29, 2006

Wanna startup?

Types of things that would be worth keeping track of if starting a company:

Different types of companies to start
Startup tools

Business models

And what would be complete without a link to wikipedia?

Or USB info like usbman, or this, or in general, this.

Also interesting is a /. article titled "Ask an Open Source Venture Capitalist", maybe there to counter-act the article on business myths?

And then we have the stuff surrounding the tax consequences of stock options. NCEO has some good paragraphs on the advantages and tax implications of ISOs. In summary, it seems that if you exercise (buy) your shares as soon as the grant is made, the that you have little risk of triggering AMT because the fair market value is about the same as the grant price. If you wait to exercise, then the FMT is likely to be higher and you're at greater risk for triggering AMT unless you sell your shares in the same year, in which case you're now going to be paying short term capital gains. But wait, that's not all! It looks like they still have a way to get you: according to Fairmark, unless you make a Section 83b Election, your reported compensation income goes up by the value of the stock as soon as the later of the following happens (some stock options let you do the above in either order) :
  1. Your shares vest
  2. Your purchase your shares
Whichever one happens last is the date that you effectively got "paid" (in options), and the IRS considers it income. But wait - does this apply to ISO's? Maybe not.


Post a Comment

<< Home