Stock option and RSU grants
Learn how to avoid costly mistakes and make the most of your ISO and RSU grants with pre-emptive equity tax planning, expert exercise advice, and 1:1 education.
Learn how to avoid costly mistakes and make the most of your ISO and RSU grants with pre-emptive equity tax planning, expert exercise advice, and 1:1 education.
What you need to know
Key steps to consider, common mistakes, and services that can help you plan for now and for your future
1. Collect Full Information
Find out the full number of shares outstanding, any upcoming dilution of shares (funding rounds, new board members), and your own history with equity at other companies.
2. File Tax Forms
Depending on the type of equity (Restricted Stock Units (RSUs), Incentive Stock Options (ISOs), etc) and the terms of your equity grant, you may want to do an early exercise and file certain tax forms, such as an 83(b) Election or Qualified Small Business Stock (QSBS) Exemption in order to save on taxes in case of a future liquidity event.
3. Calculate Potential Scenarios
Based on your strike price, current and future Fair Market Values (FMVs), you should have in mind several scenarios and cost/tax outcomes for both short- and long-term budgeting for tax payments, which can be substantial.
Common Mistakes
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Equity fair market valueInaccurate calculation of equity value
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Missing tax wins
Acting too late to take advantage of major tax opportunities
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concentrated risk
Having too much concentrated investment risk in your portfolio
What services can help?
ISOs, NSOs, RSUs, 83b, QSBS, 409a – feeling confident navigating equity jargon can be difficult. Finding an experienced advisor can help you make the best plan based on your full life picture and will make the spreadsheets and legal talk feel easy.
First: Equity Tax Planning
Tax traps and advantages
File the right paperwork by their respective deadlines to take in order to maximize the value of your equity and minimize your tax bill.
Strategic timing
Reconcile with previous equity grants, and plan to file taxes strategically over the next multiple years, if necessary.
Next: Financial Planning
Investment strategy
Take advantage of the annual gift tax exclusion and file the IRS tax forms to track gifting under the lifetime exclusion
Accurate projections
Know exactly how much you’ll have to pay and potentially gain based on several equity scenarios.
Looking ahead: Estate Planning
Founders & Investors
Consult an attorney if your equity makes up a large percentage of ownership in the company and/or if you anticipate there may be significant long-term appreciation.
Transferring to a trust
Transfer your company stock to a trust while the market value is lower to potentially significantly reduce any gift transfer taxes and/or reduce your tax liability now and later if donated to a charitable trust.
Ready to take the next step?
1-Hour Equity Tax Planning Session
A virtual one-time, one hour tax planning session with a tax advisor experienced in equity. You will review tax projections of potential equity scenarios (like exercising or selling) modeled from your specific equity grants.
Standalone Financial Planning
Work with a Certified Financial Planner (CFP) to build a personalized financial plan based on your unique goals, milestones, and career path.
Don’t wait for a mistake to get better advice
Tax, financial, and estate advisors tailored to you.
Project exercise & sale scenarios for IPOs
See equity as part of your full financial picture
