Use this incorporation toolkit to access to some of the most important documents you'll need...

Use this incorporation toolkit to access to some of the most important documents you'll need...

Use this Stock Plan Toolkit to quickly and simply create a stock plan, templates for agreements...

Use this Stock Plan Toolkit to quickly and simply create a stock plan, templates for agreements...

Use this public benefit corporation incorporation toolkit to access to some of the most...

Use this incorporation toolkit to access to some of the most important documents you'll need...

Use this incorporation toolkit to access to some of the most important documents you'll need...

Use this 83(b) Election Form tool to quickly and simply lay out the information required in the...

Use this Stock Plan Toolkit to quickly and simply create a stock plan, templates for agreements...

Cliff Vesting is a time-based vesting schedule wherein the first tranche of options does not vest until a pre-set date--the "cliff"--after which options vest on a regular schedule.

Usually, founders will pay par value for Common Stock and slightly more for any Founders Preferred Stock (more about Founders Preferred Stock can be found here). Corporate law requires every stockholder to pay adequate consideration in exchange for

An 83(b) Election is a tax filing made by the holder of stock subject to vesting to be immediately taxed on the difference in value between the fair market value of the stock and the price the holder paid for the stock. If an 83(b) election is not

See Vesting Acceleration

See Exercise

An Exercise is a transaction where the holder of an option or warrant pays the exercise price of the option or warrant in exchange for the underlying security.

The Exercise Price of a call option is the price that the holder of the option has to pay in order to exercise the call option. The Exercise Price of options granted to a company's employees is generally set at the fair market value of the

A Vesting Schedule is the schedule set forth in connection with an equity grant to a service provider setting forth the timing in which the equity grant will vest. A vesting schedule typically sets forth the date that the vesting commencement date,

Section 409A of the Internal Revenue Code sets forth the rules regarding taxation on deferred compensation (compensation which is earned now and paid later). Standard employee equity grants, such as options and restricted stock, can be considered

Initial equity grants will generally be of shares of restricted common stock because the company valuation at/near formation is usually very low, allowing for stock acquisition by grant recipients at relatively low cost (more information about

Restricted stock is common stock that is subject to vesting (usually over time, occasionally upon milestone events). More information about vesting can be found here. Companies can charge recipients for shares of restricted stock or give them to