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[navraj]

Jurisdiction/Place:

I am employed as the seniormost executive in a small education company in Fremont. As a reward for my 10 years of service, I negotiated a 10% equity in the company. The owner says that there is no way that he can do a legal transfer of stock (stock grant) to me without me incurring a large amount of tax. So, he is asking me to accept a stock options type situation instead.

I would much rather receive an actual share in the business than a stock options type situation. If the taxes to be paid are in the thousands or tens of thousands, I would be inclined to pay them by getting a loan. However, it is not clear how much the taxes would be, or what process is to be followed in this case.

Your comments?

Note that I want initial communication by email, so I have put in a dummy phone number.

[eagle20]

Listen, what do you have against meeting with a Corporate Attorney? You have so many questions that only an expert in this particular field with all of its intricacies can handle. It would make life so much easier for you. Also, once you make your final decision, please let us know.