Equity promised in an offer letter only becomes real once it is approved and documented. We prepare the grant paperwork for each hire, check it against your plan and cap table, and make sure board approvals and 409A pricing line up. Employees get documents they can understand.
At a glance
- Practice
- Employment
- Pricing
- Flat fee, quoted before we start
- Included
- 6 deliverables
- Process
- 3 steps, one named attorney
- Where we work
- Slack, email or a call
When founders call us
The moments that usually bring a company to us for this work.
- 01
You have a batch of new hires whose option grants have not been approved yet
- 02
An employee asked why their grant paperwork does not match their offer letter
- 03
You want to offer early exercise or restricted stock to a senior hire
- 04
Your option pool is running low and you need to plan the next round of grants
What you get
Scoped in writing before we start. One flat fee for all of it.
- Stock option agreements and grant notices under your equity plan
- Restricted stock purchase agreements with 83(b) election instructions where relevant
- Board consents approving grants with the current 409A exercise price
- Check of each grant against the offer letter and cap table
- Plain-language equity summary for employees
- Acceleration and post-termination exercise terms where you choose to offer them
How it works
- 1
Reconcile
We compare your offer letters, plan and cap table to find what needs approval.
- 2
Prepare grants
We draft the board consent and grant documents for each recipient.
- 3
Issue and record
After approval, we help you issue the grants and update the cap table records.
Mistakes we help you avoid
The ones we see most often, and catch before they cost you.
- Avoided
Granting options with an exercise price below fair market value, which can trigger Section 409A penalties for the employee
- Avoided
Letting months pass between the offer and board approval while the 409A value rises
- Avoided
Issuing more options than remain in the plan's reserved pool
- Avoided
Not telling early-exercise or restricted stock recipients about the 30-day 83(b) deadline
Equity & Incentive Documents: questions founders ask
Incentive stock options can only go to employees and may qualify for more favorable tax treatment if holding and other requirements are met. Non-qualified stock options can go to employees, advisors and contractors and are taxed as ordinary income on the spread at exercise. ISOs also have annual value limits and lose ISO status if not exercised within three months after employment ends, with limited exceptions.
Options granted below fair market value can be treated as deferred compensation under Section 409A, which may lead to immediate taxation and penalties for the recipient. An independent 409A appraisal gives the board a reasonable basis for the price. It needs to be current when the grant is approved.
It is a filing with the IRS that lets someone receiving restricted stock, or early-exercising options, be taxed on the value at the time of transfer rather than as it vests. It must be filed within 30 days of the transfer, and there is no extension. Whether it makes sense depends on the person's situation.
Only if your plan and grant documents allow it. Early exercise lets an employee buy unvested shares, which the company can repurchase if they leave. It is often paired with an 83(b) election, so the tax implications should be reviewed before offering it.
Get a flat-fee quote for Equity & Incentive Documents.
A short call with an attorney. You leave with a written scope and one fixed price.
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