BizSugar.com › Employee Benefits › 14 questions to ask before issuing equity to employees - The Business Journals

After representing entrepreneurs for more than 20 years, I remain dismayed at both how quickly and how often they issue equity ownership of their business to co-founders, employees, strategic partners, consultants, and vendors.

Overeager entrepreneurs too often use equity as currency without considering the legal and tax consequences, without written agreements specifying defined vesting schedules and ownership restrictions, and without considering the long-term consequences. Unfortunately, such promises are frequently a costly and irrevocable mistake.