I would like to have a clear vision of what I want the eventual equity split of the company to be, so I can understand how much to part ways with at different points of the company's evolution.
The short answer here is that this is very situational stuff and not necessarily something you can have completely planned out in advance.
If you've already incorporated (c-corp) then you'll have authorized shares and issued shares (see http://startuplawyer.com/incorporation/how-many-shares-should-be-issued-to-founders-at-incorporation)
Any additional grants would then be dilutive.
In most cases, you'll want to create a 10% option pool for future employees. Co-founders that you would bring on will typically want common stock.
Advisors or consultants that are helping out for equity would typically receive option grants that come out of the 10% pool you set up.
Long story short, depending on your situation and needs there are A LOT of ways this could go down. I would recommend reading up more about these issues at http://startuplawyer.com/ (author is a personal friend and his site is packed with great info)
Hope this helps!
Answered 9 years ago
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