FAQ

When should I exercise my stock options?

It depends on the type of option, your current tax situation, your company's outlook, and your liquidity needs. For ISOs, early exercise can reduce long-term tax liability but creates AMT exposure. For NSOs, exercise timing affects ordinary income recognition. There is rarely a universal answer. We can help you evaluate the decision in the context of your full financial picture.

What is AMT, and why does it matter for ISO holders?

The Alternative Minimum Tax is a parallel tax system that can trigger a significant liability when ISO options are exercised, even if you have not sold the shares. Many tech employees encounter this for the first time in a year they thought was straightforward. We identify AMT exposure before it materializes and plan accordingly.

How should I think about RSUs from a tax perspective?

RSUs are taxed as ordinary income when they vest, regardless of whether you sell. That vesting event also creates a decision point: hold, sell, or diversify. We help build a strategy around your vesting schedule, your existing exposure to company stock, and your broader tax picture.

What happens to my equity if I leave the company?

It depends on your grant type and your agreement. ISOs typically have a short post-termination exercise window. RSUs may be forfeited if unvested. Understanding what you have and what decisions need to be made before you leave is critical. We help you plan for the transition before it happens.

How do I reduce concentration risk in my company stock?

Systematically and tax-efficiently over time. We help build a diversification strategy that accounts for your vesting schedule, your tax exposure, your trading window restrictions, and your long-term goals, without forcing decisions that create unnecessary tax consequences.