Stock and shareholder facts
Founder stock and shareholder facts
How to prepare the stock acquisition, ownership, transfer, and holding-period facts a professional will likely ask about.
Overview
Founder stock review often turns on precise stock acquisition records, transfer history, and holding-period facts.
Key takeaways
- Original issuance and acquisition date records are central to many QSBS conversations.
- Transfers, repurchases, conversions, and secondary sales should be flagged early.
- Holding-period questions should be tied to documents rather than memory alone.
Acquisition facts
Start with how the founder acquired the shares. Common records include founder stock purchase agreements, option exercise documents, and board approvals.
- Acquisition date
- Type of equity
- Purchase or exercise documentation
Ownership changes
Any transfer, repurchase, conversion, exchange, or secondary sale can affect the review. Put these events in chronological order for the advisor.
- Transfers to trusts or entities
- Company repurchases
- Secondary sale records
Current shareholder facts
The current owner and intended transaction context can change what the advisor needs to review next.
- Current holder name or entity
- Expected sale or liquidity event
- State residency questions for professional review
Suggested next steps
- Build a stock timeline
- Collect transfer records
- Ask a professional how each event should be reviewed
FAQ
How should founders use this guide?
Use it to organize facts, records, unknown items, and questions before speaking with a qualified professional.
What should be done with state-level questions?
List them as review questions for a qualified professional. This guide does not make state-specific tax claims.
Preparation only
Use this guide to prepare a clearer advisor conversation.