Tactical Guides For Cap Table & Equity Management

Compliance

Preferred Stock vs. Common Stock: What’s the Difference?

June 23, 2022
Yin Wu
Preferred stock has a higher preference for asset distribution, but common stock may offer more upside. Learn about preferred stock vs. common stock.

What Is ASC 718?

June 6, 2022
Yin Wu
The basic purpose of ASC 718 is to outline how companies should expense equity awards in their income statements. Here’s what else you should know.

What Is Form 3921? A Guide for Startups Issuing ISOs

May 16, 2022
Yin Wu
Form 3921 is an important IRS tax form that must be filed if employees exercised Incentive Stock Options (ISOs) in the last tax year. Learn how to file it.

RSAs vs. RSUs: What to Know About Restricted Stock

May 16, 2022
Yin Wu
RSAs and RSUs are types of restricted stock that work differently in terms of taxes, vesting, and other particulars. See which equity type is right for you.

What Is the Rule 701 Exemption?

May 2, 2022
Yin Wu
Rule 701 allows qualifying private companies to avoid the expense of providing some financial disclosures. Here’s what founders and employees should know.

What Is a Convertible Note?

April 19, 2022
Yin Wu
Convertible notes are short-term debt instruments oftentimes used in seed financing and venture capital. Learn more and see if they make sense for you.

What is Stock Vesting and What does it mean to be Vested?

April 4, 2022
Yin Wu
Most equity grants require a time-based vesting period or set of vesting milestones in order for the employee to become a full owner of the award. Read on.

What Is the Section 83(b) Election? A Guide for Startup Founders

April 4, 2022
Yin Wu
A Section 83(b) election is a short letter you send to the IRS to clarify how you want to be taxed on your equity. Learn how it can affect your tax bill.

Single-Trigger vs. Double-Trigger Acceleration: What's the Difference?

April 4, 2022
Yin Wu
Single-trigger and double-trigger acceleration happen when specific events cause the vesting schedule of an equity grant to speed up. Learn more.

How Are Stock Options Taxed?

April 4, 2022
Yin Wu
In choosing whether or when to exercise stock options, tax implications play a role. But different types of stock options are taxed differently. Read more.

Pre-Money SAFE vs. Post-Money SAFE: What’s the Difference?

March 16, 2022
Yin Wu
Pre-money SAFEs and post-money SAFEs let investors give money to a startup for the right to future equity. But they are different in key ways. Learn more.

Phantom Stock Plans: How This Alternative to Real Equity Works

March 16, 2022
Yin Wu
Phantom stock, otherwise known as shadow stock, is a way to compensate employees without granting them actual shares of company stock. Learn more.