Want to offer equity to your employees? You’re not alone. Many entrepreneurs do. But if you fail to consider the legal and tax ramifications, you may regret doing so. Gunster attorney David Bates recently wrote an article for The Business Journals about a prospective client’s plan to issue company ownership as follows: 30 percent to a co-founder; 5 percent to a subcontractor creating the company website; and 5 percent to another subcontractor writing the business plan. What could possibly go wrong? Bates asked some very pointed questions – 14 of them, in fact – that caused this particular business owner to realize the mistakes he made. Caught early enough, these mistakes could be corrected. However, it’s not a position many entrepreneurs wish to find themselves in. Read the entire article by Gunster attorney David G. Bates: 14 questions to ask before issuing equity to employees (The Business Journals, 6/11/14)
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