Startup employees - get familiar with ISOs!
The vast majority of equity awards on Carta given to employees are ISOs. This is especially true in the early stages of company fundraising.
There is a consistent backbeat of NSOs as well, but the ISO reigns over the stock option types.
Once the company hits very late stage, RSUs start to make an appearance. Which makes some sense, given that with RSUs the employee is the legal owner of the shares from the day they are issued, which has some real tax implications.
Each of these different equity types comes with its own flavor of exercise needs, tax headaches, etc. But if you're joining a startup today, focusing on learnings the ins and outs of ISOs will likely be the path of least resistance.
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#cartadata #equity #ISO #NSO #RSU #employeeequity #employeeownership #tax
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
