Definition
An NQSO is a type of stock option that doesn�t meet the requirements for favorable tax treatment under the Internal Revenue Code, resulting in different tax implications for the holder.
Related Services
Tax advisory, compensation planning, and financial consulting services assist businesses in structuring stock options and managing NQSO tax liabilities.
Problem and Application
NQSOs provide flexibility but often lead to higher taxes at exercise or sale, which can reduce the benefit for employees.
Conclusion
While NQSOs can be valuable for incentivizing employees, they come with more complex tax implications that must be carefully managed.
