As you prepare to issue equity to your startup's first employees, advisors, and shareholders, it’s critical to make sure you have all your legal ducks in a row. Creating a proper stock option plan is a key step in the process.
Here at Carta, we work with thousands of founders every day who are just beginning the journey of creating their first stock option plan. There are several steps that you need to follow in order to stay compliant when granting equity — including (among other things) corporate approvals, determination of fair market value (FMV), and state securities filings.
While you should always consult with your legal team to tailor your stock option plan to the specifics of your business, the example templates we’ve shared below can be a great place to start. We’ve included templates for three essential documents every stock option plan should have:
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Form of option agreement
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Form of exercise agreement
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Equity incentive plan
We hope you find these templates helpful as you work with your legal team to create your own. If you’re preparing to issue options and track equity on your cap table, click here to learn how almost half of all the venture-backed companies in America are using Carta to do just that.
Download the Equity templates
On Carta, not only can you generate your stock option plan in a few clicks, but you can also issue equity directly to your employees and shareholders, and automatically vest their shares in real time as your company grows.
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. ©2025 Carta. All rights reserved. Reproduction prohibited.
