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Stock Options 101: A Primer from early stage to late-stage private companies

Stock options are a powerful tool for startups to access capital, attract, retain talent, and manage equity. With the right strategy, stock options can drive significant growth and success for startup businesses. In this article, we will explore the basics of stock options in startups, their different types and legal implications, the benefits they offer,…

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The Common Perils of Excel

Introduction  The cap table is an essential tool for any company, providing an overview of a business’s equity ownership and financial structure. A cap table contains critical information such as investor contributions, option pools, and dilution. Companies must have an accurate and up-to-date cap table to make informed decisions about their business. Unfortunately, many companies…

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Why Should Startups File an 83(b) Election?

When you launch a startup, there are a lot of decisions that need to be made. One of the most critical decisions that founders must make is how to manage their stock grants. The 83(b) Election is an essential tool available to startups and founders that can help them avoid certain taxes associated with their…

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Why Is Cap Table Management Important for Planning an Exit?

If you are planning an exit from your business, you know how important it is to have everything in order. Whether selling your business, taking it public, or executing a merger, proper cap table management can make a massive difference in the transaction’s success. Cap table management involves tracking and managing all of the ownership…

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Converting an LLC to a C Corp

Are you considering converting your LLC to a C Corporation? Before taking the leap, it’s essential to understand all of the implications and weigh your options. This article explores the process of converting from an LLC to a C Corporation, including the advantages and disadvantages, the impact on ownership rights, the tax implications, the costs…

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Avoid These 6 Critical Cap Table Management Mistakes

Are you a startup looking to manage your cap table effectively? Ensuring that your equity ownership structure is accurate, organized, and secure is essential for the success of your business. Unfortunately, many startups make costly mistakes when managing their cap tables – but these mistakes can be avoided with the correct information and tools. In…

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Common v. Preferred Stock

When investing in stocks, there are two primary types of inventories to consider: common and preferred. While both can be used as an investment, they have distinct advantages and disadvantages that must be considered before making a decision. This article will explore the differences between standard and preferred stock, outlining their benefits and drawbacks for…

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Cap Tables 101 for Founders: The Essential Guide for Startup Equity Management

When founding a company, it’s essential to accurately record and track equity distribution. Most founders do this using a cap table, which can range from a basic Excel spreadsheet to an equity distribution software program. Whatever tool they use for the job, founders need to understand the intricacies of their cap table to ensure their…

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What Is an Employee Stock Purchase Plan (ESPP)? Top 5 Benefits of Joining

Employee Stock Purchase Plans (ESPPs) are a benefit companies offer their employees. ESPPs present a unique opportunity to buy company stock at a discounted rate, with the possibility of tax advantages. By participating in these plans, employees become investors in their employer’s success, making ESPPs a valuable inclusion in compensation packages. This article will break…

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What is Rule 701 and Why Is It Important for Startups?

As a startup, your team’s talent and knowledge are often irreplaceable. Anything you can do to hire and keep the right people can be key to helping your company thrive. Equity can be a great way for startups to retain valuable staff, advisors, and consultants. But if your business has limited funds, you may not…

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