Tech, AI and SaaS

Stock option plan

Give your team equity. Bringing on people, and giving them equity.

What it is

A stock option plan lets your company grant employees and others the right to buy shares later at a set price, usually subject to vesting. We prepare the plan, the board and shareholder approvals and a standard grant agreement for each person who receives options.

Options let an early company offer equity alongside salary. Putting a plan in place before you promise equity keeps grants consistent and documented, and investors check them in due diligence.

You likely need this if

You’ve promised, or want to offer, equity to employees
You’re hiring and want to offer equity alongside salary
An investor asked whether you have an option pool
Early team members are asking what equity they’ll get

What the starting price includes

Option plan
Board and shareholder approvals
Standard grant agreement

What can change the price

Number of initial grants

We tell you before doing anything outside the agreed scope, and agree the fee first.

Read first How do I set up an employee option plan? The board adopts a written stock option plan that reserves a pool of shares, then grants options to individual employees under a grant agreement that sets the number of options, the exercise price and the vesting schedule. In Ontario, grants to employees, officers, directors and consultants usually rely on a securities exemption that requires participation to be voluntary. Tax rules under the Income Tax Act, which differ for Canadian-controlled private corporations, drive many of the design choices. Read the guide

Terms you’ll hear

Stock option plan Vesting Due diligence Cliff Independent contractor IP assignment

Often needed with it

Questions founders ask

What’s the difference between an option and a share?

An option is a right to buy shares later at a set price. The person doesn’t own shares until the option vests and they exercise it by paying that price.

Do options vest like founder shares?

The idea is similar. Options usually vest over time, often with a cliff, and unvested options usually end when the person leaves.

Who approves each grant?

Grants are usually approved by the board under the plan. The starting price includes a standard grant agreement; the number of initial grants can change the fee.

General information, not legal advice.

How it works

A free 15-minute call. What you’re building and what you need.
A written scope and fixed fee. Before any work starts.
A short, tailored intake. A few focused questions for your matter, so we start with what we need.
Drafting or review. Most work is back within three business days.

Send us a note All fees