For private companies, deciding whether and how employees may sell shares can be tricky. On one hand, companies want to reward those whose efforts helped put a startup on the path to success. But the sales also have the potential to create a variety of headaches if not done thoughtfully—and potentially leave a company open to liability.
Building a great technology start-up to and through a financial exit happens to a rare few. Dealing with that newfound wealth is a nice challenge to have. But it’s still a challenge. Planning early is the best way to maximize returns and make sure that your money lasts.