Should we use vesting stock options or restricted stock?

Question

I realize that, for small software startups, the future is by far the most compelling incentive. Namely, the goal of making a platform or application that is eventually bought out by a major company, due to its attraction of users etc., which provides a vision for each shareholder - monetization.

As a founder, my company is currently an S-Corp, and we have a few employees working on W2s. The other founder and I got together and mapped out Common Stock (Hard, Founder's Equity), but we have about ten other people helping us with various tasks, and we want to formalize their contributions with paper.

Since our company is still at zero revenue, which makes more sense?

Granting stock options that vest over time, or restricted stock? Our par value per share is still negligible, so something makes me think that stock options are favorable.

Answers: 0 public & 0 private

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