Founder equity (startup equity or founder shares) in either an LLC or C-corp is often the primary or even only compensation for a founding team in the very early stages of a company. In this video, we discuss the mechanics of how and why founders equity is usually purchased, some of the tax issues, the declining buy-back right approach to founder vesting to protect the company against a founder leaving the company early with a substantial amount of company ownership, and the importance of the 83b election for tax reasons.

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