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What is the difference between a stock plan and an option pool?

Incorporation & entity structure

The stock plan is the legal document governing how equity is granted. The option pool is the number of shares reserved under it.

People use the terms interchangeably, but you need the plan adopted and the pool reserved before any option can be granted. Investors look at the pool as part of fully diluted ownership.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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