RSAs are generally more effective for very early-stage startups with low valuations, since they allow employees and founders to lock in minimal tax liability through an 83(b) election.

The best approach is to consult with a tax advisor. They will assess your grant type, company valuation, and personal tax situation.

Not always. It only makes sense if the stock is likely to increase in value. If the company fails, you cannot recoup the taxes you paid upfront.

Yes, but only if you receive early-exercised options or restricted stock. Standard vested options are taxed differently.

You lose the ability to elect early taxation and will be taxed on the value of your equity as it vests, potentially resulting in higher taxes.

Yes. Investors prefer simplicity and transparency. Complex or founder-heavy structures may deter investment unless clearly justified and carefully limited.

They allow founders to operate with common stock day-to-day but convert to preferred stock in financing rounds, often boosting liquidity and value.

They are less common today. While some successful companies used them, most venture capital investors resist super voting structures in early stages.

Founder preferred shares are special classes of stock designed to give founders either greater control (super voting shares) or financial flexibility (alchemy shares).

Most states require corporations to specify a par value in their certificate of incorporation, though the exact rules vary.

It could make early equity grants more expensive and limit flexibility in future financings. That’s why startups typically choose a very low number.

No. Investors pay market value, not par value. Par value is simply a legal minimum and accounting mechanism.

To allow founders and employees to receive stock at minimal cost while leaving room for significant increases in value during future fundraising rounds.

Open communication, clear documentation, and the guidance of legal or financial advisors can help resolve disputes. In many cases, accelerators or mentors recommend starting with an equal split and adjusting only when necessary.

Investors prefer balanced and fair structures that reflect commitment and discourage disputes. Unequal or poorly documented splits can raise red flags.