Stock Option Plan | Corporate Lawyer

Generally stock option plans fall into the realm of corporate law rather than employment but if you know a good employment lawyer s/he can probably help.

The biggest variable in setting up an option plan is understanding how it fits your company's capital structure, how many employees you are likely to have, how many shares you need, who will get options immediately, etc. If you have that laid out and can articulate it to you lawyer you can save time.

I agree with this 100%. You should also consider what your exit strategy is. If you are planning to get financing or sell the company relatively soon, versus in a long time. Employment lawyers are for more complex employment issues - mostly advising on dispute prevention and litigation.

Great advice from the two responders above. I would only add that you should be sure to hire a corporate lawyer knowledgeable in securities law and to a lesser extent tax law, as these areas of law impact your stock plan as well. Good luck!

corporate attorney

To create a stock option plan you need a corporate lawyer that works with startups and creates option plans. Since that person (like myself) can handle much of the incorporation/formation matters, that is probably the best bet. Factors that determine how long a plan might take to draft depend on how customized you want to make it.

Best regards,

Alex

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Alexander C. Chen
Fortis General Counsel, LLP
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Aliso Viejo, CA 92656

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achen@fortisgc.com

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A the risk of providing what may prove to be a non-answer....

If you are a startup (as suggested by the link you provided), you probably should issue restricted stock rather than options.

For more on this topic, please see "Rewarding Key Personnel: Restricted Stock or Options?" at http://dana.sh/avUGIz.

Disclaimer: This information does not constitute legal advice and does not establish an attorney-client relationship.

Building upon a number of good replies - I would go with an experienced corporate lawyer who routinely works with newer, start-up entities. It is not just setting up the plan, but how it is adminstered and used to maximize business objectives.