Blog Category: Business Filing

Stock options have become an integral part of employee compensation packages because of the flexibility and tax benefits they offer for both employees and employers. The two key sets of accounting guidelines for stock options are ASC 718 and ASC 740. Adhering to terms and conditions ensures smooth audits and tax compliance. These accounting guidelines … Continued

Navigating taxes is like solving a puzzle. You piece together deductions and credits to minimize your liability while staying within the rules. While you try to minimize your tax, it’s of the essence to know the tax codes. For Founders and employees with stock options, opting for the 83(b) election can help you save taxes. … Continued

For employees and founders, there is a provision under IRC to pay taxes upfront on the FMV of Restricted Stock at the time of granting for beneficial tax purposes, which is called an 83(b) election. In short, you set your tax basis of your shares early on (early tax payment), and any gains down the … Continued

The Internal Revenue Service (IRS) is a federal organization responsible for enforcing tax laws and collecting taxes from people and corporations in the United States. Founded in 1862, it administers other types of taxation outside income tax, including gift, excise, and inheritance. The Internal Revenue Service often performs audits to check for tax compliance and … Continued

Intending to streamline and augment your equity management experience, Eqvista provides a suite of state-of-the-art services. We have designed our specialized platform to address the specific requirements of companies navigating the intricate subject of equity compensation. Whether you’re a startup looking to implement ASC 718-compliant stock option plans, fulfill Form 3921 reporting requirements, optimize tax … Continued

The IRS code Section 1202 is among the most significant advancements for startups in a long time, yet relatively few angel investors and business owners are aware of it. It may be a fantastic opportunity for angel investors and startups to develop their businesses. Tech entrepreneurs are issuing qualifying small company stock to grab the … Continued

Knowing the tax law and its different provisions is one approach to preventing paying too much in taxes. 83(b) election tax strategy to assist you in reducing the tax burden for employees or firms. Suppose you are a startup founder or employee and you get restricted stock awards (RSA) or options as part of your … Continued

The Securities and Exchange Commission (SEC) established Rule 701 to allow companies to issue stock options without the time & expense of registering the stock under the Securities Act. If a startup company is issuing stock or stock options, securities laws require those assets to be either registered or exempt from registration. Most private venture-backed … Continued

We have seen more understanding among company founders and investors about Section 1202. Investors in QSBS are entitled to an exclusion from taxable profits of up to $10 million under Internal Revenue Code Section 1202. The standard $10 million gain exclusion ceiling under Section 1202 will be more than enough for many taxpayers. However, some … Continued

The majority of companies use Rule 701 to distribute employee stock. It’s a federal exception that permits private corporations to give workers up to $10 million in stock without having to make lengthy disclosures. Startups and small businesses who wish to issue stock but can’t afford pricey accountants or attorneys would benefit from Rule 701. … Continued