Anyways, the major problem is that shares and options are taxed like income at the time of issue, with no easy way to defer the tax bill. This makes it essentially untenable to hand out equity to employees. This then makes it a lot harder to employ people as a bootstrapped startup.
Anyways, the major problem is that shares and options are taxed like income at the time of issue, with no easy way to defer the tax bill. This makes it essentially untenable to hand out equity to employees. This then makes it a lot harder to employ people as a bootstrapped startup.