If you have shareholders, when you sell equity in companies, since they exist outside of the Network, it’s your responsibility to report these transactions and distribute the appropriate capital gains to your shareholders. If you don’t have shareholders there’s no need to report.

You are required to report your equity sales once a year, before the tax deadline. You’ll provide basic information about what you sold, when you sold it, your original purchase price, and the sale price.

Most users can complete this annual reporting in minutes through our simple interface. We’re actively building integrations with popular equity management platforms and investment services, which will allow many of your transactions to be imported automatically when these integrations launch. For transactions not covered by these integrations, you’ll upload standard documents you’re already preparing for taxes, like transaction records or tax forms. Our system calculates the capital gains and processes the actual distribution to your shareholders. If your personal token wallet doesn’t have sufficient capital, you will be prompted to deposit the necessary funds.

The Network maintains a reputation system that tracks your reporting history and accuracy. Consistent, timely reporting enhances your reputation score, which is visible to current and potential investors. Significant discrepancies or delays in reporting may affect this score. For larger transactions, a small percentage of distributed funds may be temporarily held in escrow until verification is complete.

We’re going to make this process as simple and automated as possible. We’ll be there by your side to minimize admin BS.