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 International Employee Equity

Rafael Nova's profile image
Rafael Nova posted 11-11-2024 14:41

Hello All,

I am new to Carta and find the tool to be extremely useful. I have just incorporated as a Delaware C Corp and I am concluding my equity plan. I have a few questions around this:

  1. I have about 10 Employees/Consultants that are all based in Latin America. Should I include them in the equity plan as Consultants or Employees? I am trying to avoid any Tax impact on both the company and the employees at this stage, since we are still small.
  2. When I am creating the equity plan, it asks me for Anual Salary as an optional input. Will each person receive a letter automatically that includes the equity plan and also the agreed Salary? 
  3. Lastly, do they have to approve or sign the letter if any is issued.

Questions 2 and 3 are to validate if I would need to issue them a separate employment letter, or should this suffice. 

Thanks in advance for all your help.

Regards

Rafa

Chelsie Green's profile image
Chelsie Green posted 11-13-2024 15:53

Hi Rafael!

When adding stakeholders, you can designate them as employee or consultant. This doesn't control any tax implications, the actual equity you issue is what causes tax implications. You'll want to speak with a tax consultant for further information on international tax laws. 

In regards to question 2 and 3, Carta will not send out employment letters on behalf of a company. The column for annual salary is more for internal record keeping purposes and is not a required field. 

If you have any further questions, please feel free to reach out to launchsupport@carta.com!

Regards,
Support - Chelsie

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