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Equity decisions shape ownership, control, incentives, dilution, governance, and future financing. Fauri Law helps founders, startups, growth companies, and private companies structure equity with legal clarity before ownership issues become harder to fix.

This practice supports both bespoke advisory work and structured legal pathways, including the Equity Structuring Kit, ESOP Plan Setup Kit, Option Grant Implementation, Startup Kit, and Advisory & Transactional Work where complexity requires custom legal judgment

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Request Equity Scope Review

 

What This Practice Covers

 
 
Ownership and equity structuring focuses on how shares, options, vesting rights, and incentive arrangements are created, documented, approved, and aligned with the company’s business stage.
 
 
Fauri Law advises on matters involving:
 
  • founder ownership structure;
  • founder share issuance;
  • restricted shares;
  • vesting arrangements;
  • repurchase rights;
  • early contributor equity;
  • advisor equity;
  • employee and contractor equity considerations;
  • option plans, grants, and incentives;
  • share structure and classes;
  • cap table readiness;
  • equity documentation for financing readiness;
  • corporate approvals for equity arrangements.
The goal is to help companies document ownership and incentive arrangements before they create governance, tax, securities, diligence, or investor-readiness issues.
 
 

Why Ownership Structure Matters

 
 
Founder and equity decisions are often made early, but they affect the company for years.
 
Poorly documented ownership can create problems when:
 
  • a founder leaves;
  • a contributor expects equity;
  • an investor reviews the cap table;
  • an option plan is needed;
  • shares were promised but not documented;
  • vesting was discussed but not legally implemented;
  • IP ownership does not match equity ownership;
  • the company prepares for financing or diligence;
  • shareholders disagree about rights, roles, or control.
 
Equity structuring is not just about issuing shares. It is about aligning ownership, contribution, governance, incentives, and legal records.
 
 

Common Ownership & Equity Matters

 
 

Founder Equity

 
Founder equity should reflect ownership expectations, roles, contributions, and future governance needs. Fauri Law assists with founder share issuance, ownership documentation, founder IP alignment, and related corporate approvals.
 

Restricted Shares and Vesting

 
Restricted shares and vesting can help align ownership with continued contribution. These arrangements may involve repurchase rights, forfeiture mechanics, service conditions, and related approval documents.
 

Early Contributor Equity

 
Startups often want to compensate early contributors, advisors, or key team members with equity. These arrangements require careful scoping to determine whether shares, options, contractor terms, advisor agreements, or a different structure is appropriate.
 

Option Plans and Option Grants

 
Option plans can support employee, contractor, advisor, and executive incentives. Fauri Law assists with ESOP plan setup and option grant implementation where the matter fits scope.
 

Cap Table and Financing Readiness

 
Equity records should be clear before financing. Fauri Law assists with identifying ownership, share issuance, vesting, option, and approval issues that may affect investor diligence or financing documents.

 

View Equity Structuring Kit
View ESOP Plan Setup Kit
View Startup Kit
View Advisory & Transactional Work

 

Structure ownership before it becomes a financing, governance, or diligence problem.

Fauri Law helps founders and companies document ownership, vesting, restricted shares, options, and incentive equity with the right legal structure and scope.

Start with intake. Fauri Law will confirm whether your matter fits a structured equity workflow, ESOP setup, option grant implementation, ongoing support, or advisory work.

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Is ownership structuring the same as a shareholders agreement?

No. Ownership structuring focuses on how shares, options, vesting, and equity rights are created and documented. A shareholders agreement governs shareholder rights, decision-making, transfers, exits, and other governance rules. Many companies need both.

Does this include founder vesting?

Founder vesting may be handled through Equity Structuring if the matter fits scope. If the vesting arrangement involves tax, valuation, securities, non-resident founders, disputes, investor rights, or complex terms, advisory review may be required.

Does this include restricted shares?

Restricted shares may be included where scoped. The structure depends on the recipient, share terms, vesting or repurchase mechanics, tax considerations, corporate approvals, and company records.

Does this include option plans?

Option plan setup may be handled through the ESOP Plan Setup Kit where suitable. Option grants under an existing approved plan may be handled through the Option Grant Implementation Add-on.

Does Fauri Law provide tax or valuation advice?

No. Tax, accounting, valuation, FMV, and rollover advice are not included unless expressly stated. Fauri Law may coordinate with tax or accounting advisors where separately scoped.

Can this help prepare for fundraising?

Yes. Clear ownership, vesting, option, and cap table records can support financing readiness. Financing documents, investor negotiation, securities filings, or priced rounds are handled separately.

What if our cap table is unclear?

Cap table uncertainty may require corporate cleanup or advisory review before equity structuring can proceed. Prior undocumented issuances, missing records, or inconsistent ownership history should be reviewed before new equity is issued.

What if a founder or contributor disagrees about equity?

Disagreement or unresolved ownership issues usually require Advisory & Transactional Work. Standard structured scope is designed for aligned parties.