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Question about paying taxes on private stock in our own startup, and valuation.
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Let me try to phrase this very simply.

A year ago, my company founded, we each put in cash and intellectual property equivalent to about $10k. We worked on our product (a game) for a year, brought on advisors, established industry partners, etc.

We now would say that we want to value our company at $150k, prior to going after seed investors. We also have been in business for a year without profit, since we're still another 6-9 months from market.

If we want to value the company to be at $150k, and my shares went up in value 15x, do I personally owe any taxes on those securities? Will our company owe taxes if there was no profit?

We'll probably talk to some professionals - but I want at least an ELI-5 summary of what our obligations should look like.

Edit: in the US, registered C-corp in WA state.

Thanks!

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8 years ago