Asterops

  • Understanding Share Types: Preferred vs Common Shares

    Understanding Share Types: Preferred vs Common Shares

    Founders must understand share types: preferred and common shares. Preferred shares appeal to investors due to higher claims on assets and dividends, but lack voting rights. Common shares offer ownership and voting power but are riskier. Structuring shares depends on business goals and investor attraction while rewarding employees and sustaining founder control.

  • To 83(b) or Not to 83(b), that is the Tax Question: A Brief Guide

    To 83(b) or Not to 83(b), that is the Tax Question: A Brief Guide

    Founders and early employees in startups must decide whether to file an 83(b) election for equity compensation, impacting future tax liability. This election allows prepaid taxes at grant, potentially leading to savings if the company’s value increases. It’s crucial to consult a tax advisor, considering risks and financial situations within the 30-day window.

  • Advisory Shares

    Advisory Shares

    As a new founder, connecting with experienced individuals is crucial for success, including investors, key hires, mentors, and advisors. Advisors offer technical expertise, insights, and connections to support the company’s growth. They typically receive compensation in the form of equity, which vests over 2-3 years. Deciding on the equity percentage can be challenging, but Carta…