ETHAN COLESTARTUP & VENTURE ATTORNEYTALK ABOUT YOUR STARTUP Evolving Connect

Equity compensation

Build the team.Plan the equity.

Turn an equity promise into a documented, approved grant.

Talk about your startup
A team collaborating in a meetingBUILT AROUND YOUR BUSINESS.

01 / THE PROBLEM

A percentage is not the whole ownership story.

Compensation discussions should distinguish a proposed grant from an approved one. Clarify the instrument, vesting, approvals, and relevant tax and securities considerations with appropriate advisers.

+02 / COMMON FRICTION

Small gaps.Bigger questions.

01Equity promises without documentation

02Vesting terms left undecided

03Missing issuance approvals

04Cap table and stock records disagree

03 / HOW ETHAN CAN HELP

Understand the business.
Then the documents.

Start with your objective and the documents already in place. Identify the decisions that need attention, discuss practical options, and coordinate the work needed to move forward.

Compensation discussions should distinguish a proposed grant from an approved one. Clarify the instrument, vesting, approvals, and relevant tax and securities considerations with appropriate advisers.

+04 / WHAT THE SERVICE MAY INCLUDE

The workbehind the next step.

  1. Employee and advisor equity
  2. Vesting and exercise terms
  3. Grant documentation
  4. Board approvals
  5. Equity records

The scope is agreed for each engagement. Some questions may require coordination with tax, employment, or other specialist advisers.

07 / WHEN YOU MAY NEED THIS

Issuing founder shares?Revisiting vesting or ownership?

+FOUNDER FAQ

Good questions.Clearer next steps.

General information only.
Not legal or tax advice.

01

What is founder vesting?

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Vesting ties ownership rights to time or other conditions. Depending on the documents, the company may have a right to repurchase unvested shares if a founder leaves.

02

What is an 83(b) election?

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An election under section 83(b) can change the timing of taxation for certain transferred property subject to vesting. The filing window is generally 30 days after the transfer. Prompt individualized tax advice is important; making the election is not always beneficial.

03

What is a cap table?

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A capitalization table records the company’s ownership and may model outstanding options and convertible instruments. It should reconcile with signed documents, approvals, and issuance records.

+PEOPLE, OWNERSHIP, POSSIBILITY

Build together.Think ahead.

Clear expectations give founders and growing teams a common starting point.

Founders working through business decisions
01 / GET ALIGNED
A team collaborating in a meeting
02 / MAKE ROOM TO GROW
Explore founder agreements

YOUR NEXT CHAPTER STARTS WITH A CONVERSATION.

Let’s talk about
what you’re building.

Tell Ethan where the company is today
and what needs to happen next.

Talk about your startup