Startup Equity 101: Demystifying Stock Options and More

This comprehensive guide unravels the complexities of startup equity, covering key concepts like stock options, restricted stock units, 409A valuations, dilution, and liquidation preferences. The author stresses that equity is not just about numbers; it's deeply intertwined with your long-term financial well-being. The guide meticulously explains the tax implications of Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NSOs), including strategies like 83(b) elections and the Qualified Small Business Stock (QSBS) exemption. Ultimately, the author advises readers to make informed decisions about exercising options based on their financial situation and risk tolerance, and to seek professional advice when needed.