Equity only motivates people if the grants are valid, priced correctly and documented. We set up your equity incentive plan, prepare option and restricted stock grants and keep board approvals tied to a current 409A valuation. Plan setup and grant batches are each a flat fee, quoted in advance.
At a glance
- Practice
- Venture & Corporate
- 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 promised an early engineer options in their offer and have not granted them yet.
- 02
You are about to adopt your first equity incentive plan before or alongside a priced round.
- 03
An advisor or consultant wants equity and you need to pick between options and restricted stock.
- 04
You raised money and need a fresh 409A valuation before the next batch of grants.
What you get
Scoped in writing before we start. One flat fee for all of it.
- Equity incentive plan with stockholder and board adoption
- Form stock option agreements for ISOs and NSOs and notices of grant
- Restricted stock award agreements with 83(b) election forms
- Board consents approving grants with exercise prices tied to the current 409A
- Rule 701 compliance review for grants to employees and consultants
- Grant tracking aligned with your cap table platform
How it works
- 1
Plan design
We size the pool with you and set vesting, exercise window and acceleration defaults for the plan.
- 2
Grant packages
We prepare grant documents for each recipient and confirm a valid 409A valuation supports the exercise price.
- 3
Approval and delivery
The board approves grants by consent, and we deliver signed agreements and update your equity records.
Mistakes we help you avoid
The ones we see most often, and catch before they cost you.
- Avoided
Granting options below fair market value, which can trigger penalty taxes for recipients under Section 409A.
- Avoided
Promising a percentage of the company in an offer letter instead of a fixed number of shares.
- Avoided
Treating options as granted on the offer date when the board has not yet approved them.
- Avoided
Exceeding Rule 701 thresholds without delivering the required financial and risk disclosures.
Equity Plans & Grants: questions founders ask
Incentive stock options can only go to employees and can receive favorable tax treatment if holding periods are met, though they may trigger alternative minimum tax. Non-qualified stock options can go to employees, advisors and consultants and are taxed as ordinary income on exercise. Which fits depends on the recipient and their tax position.
To avoid adverse tax consequences, options should be granted with an exercise price at least equal to fair market value on the grant date. A 409A valuation from a qualified independent appraiser is the common way to support that price. Valuations are generally refreshed at least annually and after material events such as a financing.
Pool size depends on your hiring plan through the next financing and on what investors expect at that stage. Building the pool from planned roles and grant sizes tends to give a more defensible number than a rule of thumb. The pool is usually set or increased as part of a priced round.
Rule 701 is an SEC exemption that lets private companies issue equity to employees, consultants and advisors under compensatory plans without registration. If the amount sold in a 12-month period exceeds $10 million, the company must give recipients additional disclosure, including financial statements. Tracking grants against that threshold matters as the company grows.
Get a flat-fee quote for Equity Plans & Grants.
A short call with an attorney. You leave with a written scope and one fixed price.
Book a call