Equity Incentives

In California, Non-Voting Shares Aren’t Always What They Seem

Business owners often inquire about establishing voting and non-voting shares. The primary motivation is a desire to limit the...

Empowering Employees through Stock Ownership Act Aims To Encourage Stock Options and restricted stock units For Startup Employees

On July 12, 2016, the U.S. House of Representatives recently passed the Empowering Employees through Stock Ownership Act, a...

Jan 10 · 1 min read >

What Is A Liquidation Preference On Preferred Stock (And Why Should You Care)?

Liquidation preference is an essential part of preferred stock and is often considered to be among the most important...

What is the Difference Between Non-Participating and Participating Preferred Stock?

Liquidation preferences are an important part of preferred stock terms. Digging a little deeper, there are two basic types...

Changes Made To Section 83(b) Election With Electronic Tax Returns In Mind

The Section 83(b) election is popular among startup founders and employees, as it can sometimes save them from a...

Catch-Up Distributions For Profits Interests

In an earlier post, I talked about the 4 basic forms of equity (or equity-type) compensation that Limited Liability...

What is an 83(b) Election and when should I make one?

Section 83 of the Internal Revenue Code applies to various forms of deferred compensation, including equity compensation such as...

Equity Incentives for LLCs and Partnerships

I.  Introduction Limited Liability Companies and partnerships (both referred to here as “LLCs”) can issue 4 basic forms of equity...