I have a tax question pertaining to ISO stock that I received from a startup that I just recently resigned from.
When I joined the company, I received 144,617 shares at a strike price of .005 and after I left the company I had 60 days to exercise the shares that I received.
After I exercised my shares, I cut a check in the amount of: $723.09 (144,617 X.005).
Just a month prior to my resignation, the company raised a small amount of capital at a strike price of .0947.
Now to my question, prior to my resignation I was never on salary hence their was no reason to have had withholding set up. I was working with my sweat equity. Now, since I exercised my ISO options at a strike price of .005, am I obligated to withhold tax on this exercise now that the company raised capital at .0947?
To be clear, I never made any money on the exercise (only send in a check). I wanted to be clear that I don't need to withhold any tax for the difference in my exercise price of .005 vs. the .0947
As always, their is always a possibility the company will not be around two years from now.
Thanks in advance for answering my question!
When I joined the company, I received 144,617 shares at a strike price of .005 and after I left the company I had 60 days to exercise the shares that I received.
After I exercised my shares, I cut a check in the amount of: $723.09 (144,617 X.005).
Just a month prior to my resignation, the company raised a small amount of capital at a strike price of .0947.
Now to my question, prior to my resignation I was never on salary hence their was no reason to have had withholding set up. I was working with my sweat equity. Now, since I exercised my ISO options at a strike price of .005, am I obligated to withhold tax on this exercise now that the company raised capital at .0947?
To be clear, I never made any money on the exercise (only send in a check). I wanted to be clear that I don't need to withhold any tax for the difference in my exercise price of .005 vs. the .0947
As always, their is always a possibility the company will not be around two years from now.
Thanks in advance for answering my question!