Frequently Asked Questions

Issuing Stock

How do I issue stock?

After incorporation and company formation, Gust Launch gives you the ability to issue Common Stock. With our guided workflows, we walk you through the process of granting stock. Answer a few questions about the number of shares you are granting and the vesting schedule and we’ll automatically generate the legal paperwork for you to sign electronically. Then we’ll send it to the stock grantee so that they can also review and sign. They’ll also receive an 83(b) election form so that they can take advantage of potentially favorable tax treatment if they so choose.

Who should I grant Common Stock to?

Common Stock is usually granted to the founding team immediately after the company is formed in order to divide and establish ownership in the company. It can also be granted to early advisors, board members, employees, contractors, accelerators, and strategic partners. Investors are not typically issued Common Stock; instead they are issued Preferred Stock, which has different rights and privileges.

What kind of stock should investors receive?

Investors are issued Preferred Stock, which has additional rights and privileges that Common Stock does not have (such as liquidation and dividend preferences). Startups typically issue Common Stock to founders, advisors, board members, employees, contractors, accelerators, and strategic partners.

Should I grant stock or options?

How should I divide shares amongst my co-founders?

Should my company establish multiple classes of common stock?

What is a cap table?

What is a spousal consent form, and why do I need to sign one?

What is an 83(b) election? Should I file one?