Factors to consider when splitting startup equity (5)
Legal and tax considerations. There may also be legal and tax implications to consider when splitting startup equity. For example, founders may want to consult with a lawyer or accountant to understand the tax implications of different scenarios to ensure that the company is structured in the most tax-efficient manner possible.
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Because we don't think about how to distribute equity in a startup until is late and when it is complicated to change things.
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Factors to consider when splitting startup equity (3)
Future plans. Founders should also think about long-term goals and how equity splits may impact those plans. For example, if one founder plans to take on a full-time role with the company while the other intends to remain a passive investor, this may affect equity split.
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