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Have you ever checked an employee’s or applicant’s LinkedIn, Facebook or Twitter accounts? If so, did you know that throughout the last several years, more than 20 states have passed legislation limiting employer access and activity related to the social media accounts of job applicants and current employees?

One question almost all founders will run into—whether at the time of incorporation, when hiring their first employee, or just before raising the first round of financing—is how to structure the pool and create incentives for employee recruitment and . often find themselves in a fierce battle for talent, pitted against bigger, cash-flush companies that can higher salaries than can afford to pay. This is why equity incentives—in the form of —are so popular from a recruitment perspective.