A Note on the Legal and Tax Implications of Founders' Equity Splits Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

This note summarizes essential legal and tax issues that creators should consider as they contemplate an equity split and ownership structure.

Particular issues covered include: why founders shouldn't delay dividing the equity, and whether they should involve an attorney or accountant when they do; the importance of contemplating intellectual property (IP) problems when carving the equity and the need to do so consistent with Section 351 of the Internal Revenue Code; and the need to make timely and valid Section 83(b) elections if the creators adopt vesting as part of the equity split.

PUBLICATION DATE: February 04, 2009 PRODUCT #: 809110-HCB-ENG

This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP