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If you're receiving NQSOs (non-qualified stock options) instead of ISOs, note that the document is entirely confused about them. They have nothing to do with advisors vs employees.
one question - the doc has a very standard "I'm not a lawyer so go get a lawyer" which is understandable and appreciated. Could someone who is a lawyer read the document over and give a thumbs up/down or give their notes on it? obviously their notes wouldn't be legally binding either, but it would be a step which would improve this already awesome guide.
Hey there's something I'm a bit confused about. The text talks about how when you receive stock as an employee you pay income (gains) tax over them for which they might not have the cash. Does this also hold for other stock holders like the founders? When the FMV has increased, do founders also have to pay taxes for their shares?
To avoid this, vesting founders would presumably file an 83b election within 30 days of receiving the shares (mentioned in the PDF.) Then, they only have to pay tax when they sell the shares. And if they held on to those shares for over one year, this would be a smaller, capital gains tax. Described in more detail here: http://www.grellas.com/faq_business_startup_004.html