A stock option plan for your growing team

Give your team stock options the right way

A stock option plan lets you grant your team the right to buy shares later at today’s price. The plan can grant incentive stock options (ISOs) to employees and nonqualified stock options (NSOs) to employees, advisors and contractors. Your board adopts the plan, and your stockholders must approve it for ISOs. Before you grant options, you need a 409A valuation to set the exercise price, so plan time to work with a valuation provider and confirm the tax points with your tax advisor. Grants to California team members also need to fit the Rule 701 and California section 25102(o) exemptions. How large the option pool is remains your business decision. Foundkits helps you set up a stock option plan with an independent California attorney, including the grant documents, for a fixed fee of $2,000.