StartupsNov 15, 2019
Newaksbw

Would you pay for startup equity advice?

I have been in several startups and learned a lot about stock options, taxation, AMT issues, ... I found that the overwhelmingly vast majority of the startup folks I talk to, including ICs and managers, don’t know anything at all about that. Last year I caught a colleague who forfeited her AMT credits for previously exercised options because she didn’t even know AMT is refundable (!!!). Do you think there could be a way for me to charge something for non-legal advice on the matter?

Postmates Rithm&Floe Nov 15, 2019

Long answer: Yes, but even if its non-legal advice, it's probably going to be considered "tax advice", which is still going to leave you with a ton of liability if anyone who pays you for advice then suffers tax consequences. Short answer: Yes, but DON'T.

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geoffbenzo Nov 16, 2019

I wouldn’t pay for startup equity why would i pay for advice

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CmNw88 Nov 17, 2019

Some companies will issue you loans to do this. But yes, if I'm eligible for QSBS I'd probably early exercise to keep that upside. Generally, the payment for my equity is so small compared to the opportunity cost of working at the startup in the first place.