

Ask HN: As a contract to hire for a startup, how do I obtain equity? - adamwong246


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jasonkester
You don't. The whole point of working on a contract is that you trade a
(substantially) higher bill rate for all the standard benefits of working as
an employee.

So no healthcare, no company provided machine on your desk, no paid vacation
or sick leave, no retirement contribution, no invite to the xmas party, and no
stock options or equity.

Negotiate your contract with that in mind, and charge accordingly. When and if
you decide to do the "to hire" part of the arrangement, negotiate that bit
knowing that equity and free cake at Stan's birthday party are now back on the
table. (Favor the latter, as it's likely worth more).

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mtmail
Stock and stock options are also usually a means to keep an employee tied to
the company (less likely to leave). I've done bonus payments at certain
events, e.g. financing rounds (all written in contracts of course) and seen
companies giving a fixed amount of stock to advisers. But a contractor owning
any significant equity or stock options doesn't make sense for the employer.

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trcollinson
This may sound a bit short but, ask a simple question, get a simple answer.
You'll want to negotiate that as a part of the hiring process as you move from
contract to hire. Just as you would do with a purely hiring situation.

Do you have some further concern about making this happen?

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lingua_franca
get converted first, bargain then.

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debacle
Ask for it.

