I am about to receive 5% of the shares of new company. What should I do according tax?

[rjs]

What kind of company is it: an LLC? partnership? S corp? C corp?

Why are you receiving the shares? Are you paying for them? Are you getting the shares from the company or from an existing owner or partner?

Are you an employee of the company?

Is the new company related in any way to an existing company where you are an owner, partner, or employee?

[Arieshilan321]

Its a c corp.

Im receiveing the shares free, as motivation to increase sales of a new company. Im an employee.

[AmeliesUncle]

The value of the shares is taxable to you, possibly as wages.  You may want to ask the company how they are structuring the transfer of shares to you.