I work at a startup that is about 1.5 years out from a potential IPO. I know it is not guaranteed but given the niche we operate in and the partners we have I think we have a very high probability. I'd guess 50/50 right now, or we get purchased by a MAJOR tech company for our technology and customer base. I have 8500 NSOs with an exercise price at $2.50/share And a FMV of $10/share. I also have 2000 ISOs with an exercise price of $10.
If I was going to exercise options, which I want to because I suspect another round of funding and a higher FMV, is it better to do the NSOs in this scenario. My salary is over $200k for tax purposes, single filer. I understand I'll have to pay taxes on the NSOs immediately upon exercise for the realized gain of value, or is it better to pay a higher rate for the ISOs because there is no realized gain? I get confused around AMT tax and what not. Let me know what you think?
Submitted May 15, 2021 at 12:11AM by TheRaiderettes https://ift.tt/3fi9EKZ
