Re:Ask HN: Joined a startup? Your taxes are about to get com...
by brntsllvn on Tuesday April 18, 2023 @11:24PM
(#35623920)
> Is there any way a pre-IPO startup can give equity without imposing a tax burden on employees?
Answer: ISOs are one way. Although I'd clarify that employees will pay tax, it's just a matter of when.
Learn about ISOs here: https://turbotax.intuit.com/tax-tips/investments-and-taxes/i...
Re:Ask HN: Joined a startup? Your taxes are about to get com...
by yellow_lead on Wednesday April 19, 2023 @06:51AM
(#35626618)
Thanks, yes eventual tax is inevitable!
For instance, if an employees options vest, I believe they are required to pay taxes on the computed value of the shares. But in i.e a pre-seed company, there may be further dilution, so you end up paying tax on something that is lost in the end.