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If you're not getting any kind of equity, don't work for the start up.
For the start-up, do you have the right to buy stock if they go public? If they are already public, do they issue stock grants?
Coach
I think there are other decisions to review also also besides equity comp. I assume based on your title you have less than 5 years experience (correct me if I’m wrong):
1. Team: how big is the team in each? How are questions answered, who will mentor you? You might get to see a lot of things and working under pressure (which will make you more marketable down the road for future roles).
2. Which entity makes money? Startups usually burn cash in the pursuit of growth? This translates into NOLS and losses which usually means little or no bonuses (cash). You can issue a trillion dollars worth of options, but unless the company has an exit or IPO above your strike price, you may not see a cent.
3. Actual work: how are returns and provision handled? In house or “co-sourced.” When co-sourced, internal tax folks are usually first to go in years of consistent losses. Bringing that work in house also requires a significant technology investment as well.
4. Career growth: in my #1 above, if you’re part of a larger team, you might not get promoted as fast as you’d like. In a leaner team where it’s trial by fire, you have a wider runway to growth. I’ve seen peers get hired by PE portfolio companies as a tax senior or manager to rise to a VP role. Again, trial by fire, and larger runway. The flipside is that between resource constraints and budget cuts, I’ve seen a few burn out. YMMV.
Important questions to ask:
1. Who will be your mentor? How do they plan on growing you?
2. How will they set you up for future success?
3. How will they invest in your development?
4. Finally, what do you want out of a career in tax?
Good luck.