Selling a company for equity

ChaseonChaseon subscriber Posts: 1
edited November 2010 in Business Planning
All-

I am in the process of incorporating a company that will be sold next year in return for equity in an existing business.
My question is, will I pay tax on the value of the equity that I receive (not a publicly traded company) at the time of the transaction or at the time of final liquidation?

Thanks in advance for your help-

Best,

Chase
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