When you start your company, how should you value its stock? Does this even matter? Both questions have relatively direct answers--you should value your company's stock cheaply, and it is important to do so because it mitigates the risk of getting hit with a huge tax bill which could have been avoided. This article goes into much greater detail about the answers to both of these questions, complete with numerical examples.
- Summary by FizzLaw Team
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Startup Law 101 Series - Why Founders Should Use Cheap Stock in Capitalizing Their Startups