- Vomik
- Jul 29, 2003
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This post is dedicated to the brave Mujahideen fighters of Afghanistan
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How much money do he and the CEO have invested?
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Sep 23, 2011 23:31
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Apr 29, 2024 01:45
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- Vomik
- Jul 29, 2003
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This post is dedicated to the brave Mujahideen fighters of Afghanistan
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Are you allowed to just take a smilie from SA and sell it a la "memeorable?"
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Oct 22, 2011 14:27
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- Vomik
- Jul 29, 2003
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This post is dedicated to the brave Mujahideen fighters of Afghanistan
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This seems like it is mostly based around tech/product ideas. I was talking to an entrepreneurial friend who is trying to break into the medical info field, and it was really making me think that there was probably nothing I could ever do that would lead to me starting my own company (political science guy with a Mideast background). But then I was like wait - I know literally dozens of incredibly well-qualified, experienced Middle East people. I could easily assemble a crazy network of analysts. Has anybody worked in the field of consulting startups? Am I dumb? How does one figure out if there are clients for this sort of thing?
Well, what would you consult on? Just having a team of middle-eastern people isn't going to do anything for you
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Jun 27, 2012 15:20
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- Vomik
- Jul 29, 2003
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This post is dedicated to the brave Mujahideen fighters of Afghanistan
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Imagine this...
There's a company out there that has raised a half million to create a first version of their product. They *almost* did that, but ran out of money before they could finish. They've had hundreds of beta users with some good feedback.
Everything about the business idea, the code developed already, the other founder and the initial investor seems legit.
Now, they need someone to help finish. So they call up good old Gounads and asks me to work for equity-only.
They claim the business is currently worth $4m and are currently having an independent agency do a valuation. (I'll try to talk them down) (To further complicate it all, this product isn't the only part of the business but the equity would be for the entire business)
I'd like to get in and do this deal, but then I go read about how the IRS taxes these things. For established companies, they count that equity given for work as income. WHAT? Doing some quick math.. if they give me, say, 10%... that's $400k worth of value that I'll have to pay income tax on (assuming I file my 83b up front) and I don't have ~$100k to spend on taxes. If I don't file that 83b, I still have to pay that tax over the vesting period, and it might be more assuming the company value goes up.
Besides a straight-up equity deal, are there other ways to structure this where I don't get screwed by Uncle Sam?
That doesn't sound right - and I also think you may be looking at real equity e.g. Trade able stock. Not sure how the federal government would get involved with appraising a private business. It also sounds like double taxing if true.
Should be a quick discussion with an accountant though which you'd hopefully do anyway.
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Jan 20, 2016 16:54
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Sep 23, 2011 23:31
