I started a vending machine business last year as a side job while I am employed to a corporate world. Now I rely more on my earnings in my vending machine business. Such a good idea to start one.
On Equity: how do you split when say two founders put in 50k each and 7 other founders put in 10k each? Is it just a percentage of the whole or is it better to have everyone put in an equal amount?
So, do you have to file a 409a valuation before the founders sign their stock purchase agreement and start vesting schedule ? Or the founders don’t need to file 409a? Before they start vesting? And also, would the founders vesting stock be considered as stock option, since it’d be in a vesting mode?
No, if you issue restricted stock (w/ vesting schedule) as part of a standard shareholders agreement, submit an 83(b) election, and assign a nominal value for shares, then you don't need to file a 409a. When you need to file a 409a is technically in a gray area since the IRS doesn't comment directly on whether accepting Convertible Notes or SAFEs act as a triggering event, but generally it's agreed upon that a 409a won't be required until you raise a priced round (Series A). Standard caveat that I'm not a lawyer so you shouldn't just accept what I said at face value, but hopefully it directs your own research! If you're incorporating right now, I'd recommend using a service like Clerky. I've heard good things about Gusto and Stripe Atlas too. They handle all of this stuff for you and provide plenty of direction so you don't mess anything up.
Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18) 803 B election: m just do for stock. Restricted stock Vesting and cliff
Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18) 803 B election: m just do for stock. Restricted stock Vesting and cliff
This is gold! Thanks for the content
Rewatching this, I'd have liked to hear about double-trigger-condition for vesting
time and / or performance requirements
Applied when the company is for instance acquired
Excellent lecture full of insights. Thank you!
I started a vending machine business last year as a side job while I am employed to a corporate world. Now I rely more on my earnings in my vending machine business. Such a good idea to start one.
Where do you find places to put them?
On Equity: how do you split when say two founders put in 50k each and 7 other founders put in 10k each? Is it just a percentage of the whole or is it better to have everyone put in an equal amount?
Very helpful! Thank you.
So, do you have to file a 409a valuation before the founders sign their stock purchase agreement and start vesting schedule ? Or the founders don’t need to file 409a? Before they start vesting? And also, would the founders vesting stock be considered as stock option, since it’d be in a vesting mode?
No, if you issue restricted stock (w/ vesting schedule) as part of a standard shareholders agreement, submit an 83(b) election, and assign a nominal value for shares, then you don't need to file a 409a. When you need to file a 409a is technically in a gray area since the IRS doesn't comment directly on whether accepting Convertible Notes or SAFEs act as a triggering event, but generally it's agreed upon that a 409a won't be required until you raise a priced round (Series A).
Standard caveat that I'm not a lawyer so you shouldn't just accept what I said at face value, but hopefully it directs your own research! If you're incorporating right now, I'd recommend using a service like Clerky. I've heard good things about Gusto and Stripe Atlas too. They handle all of this stuff for you and provide plenty of direction so you don't mess anything up.
So very informative, learned several useful points. However, didn't like that founder minimum wage part.
Never knew anything about counting, but it was really important thank you, love your accent
They teach us counting as toddlers
@@blackjackool Actually, your wroing. They also teach it at Y Countinator.
Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)
803 B election: m just do for stock.
Restricted stock
Vesting and cliff
I think that allocation has to be also dictated by the technical expertise that the founders are bringing and therefore it may not be equitable
Gold
Solo founders are the coolest... Not this headache
Oh no! The future of my Florida LLC is ruined! 😂
Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)
803 B election: m just do for stock.
Restricted stock
Vesting and cliff
Very helpful. Thank you.
Thank you, really helpful.