Here are a few practical ways for startup founders to shift out of survival mode and reconnect with themselves (and their companies) from a place of clarity and grounded confidence.

Not all dividend provisions are created equal, and the difference between cumulative and non-cumulative dividends can significantly affect how investor economics work at exit.

If you’ve just incorporated your startup and received restricted stock as a founder, congratulations—you’ve taken a major step in building your company. But don’t stop there. One of the most important early tax decisions you’ll make is whether to file an 83(b) election with the IRS. If you don’t, you could face a hefty tax bill down the road.

If you’re an early-stage startup founder thinking about granting stock options, one of the first terms you’ll need to set is the exercise price—also called the strike price. This is the price at which a recipient can purchase a share of stock when they exercise their option. Sounds simple enough, right? But setting it too low can trigger serious tax consequences, and setting it too high can reduce the incentive value of the options. Here's how to get it right—especially when you’re still pre-revenue or pre-funding and not ready to pay for a formal 409A valuation.

For startup founders and investors alike, the potential tax benefits of Qualified Small Business Stock (QSBS) can be highly attractive. QSBS treatment, governed by Section 1202 of the Internal Revenue Code, offers a significant tax exclusion on capital gains—potentially up to 100%—when stockholders sell their shares. But it only applies in certain contexts.

Incentive Stock Options (ISOs) are a common form of equity compensation offered to employees of startups and growing companies. For employees, ISOs often represent the potential for significant financial upside. However, the tax implications of exercising ISOs can be complex, particularly when the Alternative Minimum Tax (AMT) comes into play.

Securing funding is crucial for early-stage startup founders, and delivering a compelling pitch can make all the difference. In this blog post, we explore five key tips for pitching to investors: make them think with thought-provoking questions, share a personal story to connect on a deeper level, evoke emotions by being raw and vulnerable, present surprising facts to highlight urgency, and maintain honesty by admitting what you don't know. By following these strategies, founders can create a memorable and impactful narrative that resonates with investors and builds lasting relationships.

Explore the importance of milestones in investment documents for life science startups. Learn how to structure measurable goals that align with business objectives, enhance investor communication, and attract funding opportunities. Understand the significance of clinical, financial, operational, and market entry milestones in preferred stock rounds. Optimize your startup's fundraising strategy with clear, relevant milestones.

Discover the legal ramifications of not filing an 83(b) election for startup founders. Learn about the tax consequences for stockholders and companies, especially W2 employees, related to restricted stock vesting. Explore options to address missed filings and strategies to structure equity compensation, including the benefits of stock options versus restricted stock grants.

The startup fundraising process is undoubtedly challenging for founders, but it doesn’t have to come at the expense of your well-being. By remembering that all opinions are subjective, trusting your vision, and prioritizing your mental and physical health, you can navigate the pressures of fundraising without losing yourself.

Understand the details and impact of the Federal Trade Commission’s new rule to bar employers from enforcing non-compete agreements

Understand how startup investors and other stockholders can gain some tax relief under Section 1244 of the Internal Revenue Code when a startup losses value.

Don’t overpay Delaware franchise taxes! Use this comprehensive guide to calculate the exact amount of franchise taxes your Delaware corporation owes.

Qualified Small Business Stock comes with substantial tax incentives—if companies and stockholders satisfy all IRS requirements.

How to comply with the Corporate Transparency FinCen filing requirements.

Understand the key purposes of a 409A valuation for a startup company.

Understand the expectations, challenges, and considerations of closing a Series B fundraising round.

We break down the crucial terms of a preferred stock financing term sheet.

Learn about the key factors that have contributed to Delaware's status as a corporate haven.

Explore the rights of minority stockholders in Delaware corporations and how these rights are safeguarded by Delaware corporate law.