How to Save Capital Tax When Holding Unicorn Stock for Startup Employees?

Besides making a startup successful, another big problem for founders and startup employees is the tax on the stock options, RSU, and common stocks.

When a startup issues stocks initially, the stock's price is meager, but if the startup succeeds, a stock valued at 1 cent can go to a few dollars or even more. The United States and Canada will charge the capital tax on that gain and sometimes income tax. Imagine paying half of your payment to taxes.

One of the tips is to set your options and stocks into a registered account.  In Canada, you can put stocks into an RRSP or TSFA account; but there are a few rules that work. You should also evaluate putting the assets into registered accounts to protect your stocks from taxes in the US.

That can help you to save a lot in case your startup succeeds. Check with your accountant!