I am not a lawyer. Even worse, this is random internet advice.<p>There is clear guidance and precedent for investors and employees - founders are best thought of as early employees of a C-corp.<p>Stock options for a contractor are likely to be a legal and tax quagmire on both sides. I suspect it to be symptomatic of a lack of experience and sound advice.<p>From your standpoint. Contractors get paid and that&#x27;s what seed stage funding is for. The value of any stock options you received would be dependent on the goodwill of those who control the company several years down the road. If there&#x27;s actually good will now, then additional options can be granted if and when you are hired as an employee.<p>That the company cannot hire you now suggests that it is underfunded or understaffed with technical people or both.<p>Keep in mind that stock options are not stock. They have no value unless exercised. Granting options to an LLC would compound the quagmire (if quagmires can be compounded).<p>Good luck.