Startup Terms Glossary
What is a Non-Qualified Stock Option?
When a stock option offered to an employee does not positively impact their tax liability, it is called a non-qualified stock option (NSO). Non-qualified stock options differ from inventive stock options because when an employee exercises or sells their NSO, they are obligated to pay taxes immediately. Non-qualified stock options are less desirable in the stock market because shareholders pay more taxes when dealing with them.
Non-Qualified Stock Option Examples
Examples of why non-qualified stock options can be helpful:
- Example 1. Can be used to compensate employees
- Example 2. Share costs are similar to market value
- Example 3. Motivates employees due to sense of ownership
This page also discusses non-qualified stock options.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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Brett S.
I attended the University of Illinois- College of Law on a full merit scholarship. While in law school, I was a 711 Attorney at the Lake County State's Attorney's Office, specializing in traffic and misdemeanor cases. After graduation, I served as in-house counsel for one of the largest insurance companies in the world, managing thousands of cases from initial intake to trial. Upon leaving this position, I accepted a role as Legal Counsel to the Illinois Senate Minority Leader. There, I advised Senators on legislative matters, labor and employment law, and complex constitutional questions. After leaving public service, I accepted a role at a mid-size Chicago-based law firm, where I practice insurance defense and litigation. In addition to this, I also serve as outside general counsel to a food brokerage business, where I handle all of their labor and employment matters.
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Zachary D.
Helping small business owners meet their legal needs.
"Zachary was great to work with. Highly recommend for estate planning. Thanks so much!"
July 25, 2023
Albert I.
Construction lawyer practicing in Southern California since 1988. Have extensive experience in construction contracts and forms drafting, negotiating. I also serve as counsel for large material suppliers and have extensive experience in commercial transactions, drafting and negotiation of commercial documents including dealerships, NDAs, etc.
Brad B.
Business attorney with over 15 years of experience serving companies big and small with contracting including business, real estate and employment.
July 26, 2023
Nicole W.
At Whalen Legal Group, PC, we strive to ensure that our clients are provided with the highest quality legal representation. Our team is committed to providing you with personalized and effective legal advice. We specialize in Business Law, Estate Planning and Trust, and Real Estate Law and have years of experience in these fields.Our goal is to provide our clients with the best possible service and to ensure that their legal matters are handled with compassion, integrity, and transparency. We understand that every situation is different and we take the time to listen and understand each and every one of our clients’ needs.
November 1, 2023
Luiza D.
I represent business owners throughout California with their business, IP and employment law matters.
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