Founder Friendly Standard v1.0 has been updated today. The new version of the standard is 1.1. Here is a description of the change:
- Section 2.4 – clarifying language (in bold) has been added for companies outside of the United States. The section now reads: Due to potentially devastating tax consequences, the company tells individuals receiving sweat equity in the United States to consult with a tax professional about making an election under Section 83(b) of the Internal Revenue Code. Founders who live or pay taxes outside the United States are similarly advised to consult tax professionals about applicable local and national taxes.
If you’re curious about how the Founder Friendly Standard came to be, check out the story of our terrible startup experiences in “I’ll be the Sean Parker to your Mark Zuckerberg.”