Question
Lets assume that founders have $0 in a startup but all of the shares. The company valuation would be zero at this point. Now some time down the road an investor acquires shares in the startup, giving the company a certain valuation.
Due to the change in value, are the founders subject to any tax at this point on their stake in the company?
Could such a tax be avoided while retaining the paper valuations?
Answers: 0 public & 0 private
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