Legal Question in Business Law in New York
Must a privately held s-corp have a stock option plan for it to issue a restricted stock agreement?
1 Answer from Attorneys
Generally speaking, the IRS mandates incentive equity plans for options, however there is a significant advantage to having an incentive stock plan in place for a company that issues a grant of restrictive stock.
Regardless, you may have bigger issues looming as the issuance of restricted stock in an s-corp presents challenging realities in the event the company is ready to bring investors on board or is ready to diversify its stock offering and add preferred stock.
I am a startup attorney and very cost effective. Contact my office for assistance with this issue.
Roman R. Fichman, Esq.
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