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Should I issue ISOs, RSUs, or RSAs for my employees?
Should I issue ISOs, RSUs, or RSAs for my employees?
Michelle Chu avatar
Written by Michelle Chu
Updated over a week ago

RSUs are taxed as ordinary income. ISOs have some preferential tax treatment for USA residents, so companies tend to issue that.

At very early stage companies some founders issue RSAs, which are similar to what you must have issued yourself as a founder. They’d file an 83b election, so acquisition taxes get taken care of then.

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