What is a advisor agreement?
An advisor agreement sets the terms when an experienced person agrees to give a company ongoing advice without becoming an employee or director. Startups often pay advisors in equity, such as options or a small number of shares vesting over the advisory term. Small businesses more often pay a monthly or hourly fee. Either way, a short written agreement avoids confusion about what was promised, and makes sure the company owns anything the advisor creates for it.
The template lets you describe the areas of advice and an expected time commitment, and set a 6-, 12- or 24-month term. You choose equity, a cash fee (per month, hour or meeting), both, or no payment, and the compensation clause changes to match. Any equity grant remains subject to board approval and a separate grant agreement. It also covers expenses (with an optional amount below which no pre-approval is needed), the title the advisor may use publicly, independent-contractor status, conflicts of interest, confidentiality and IP assignment, and ending the agreement on notice.
- Best for
- Startups adding advisors; small businesses engaging a paid mentor or adviser
- Signed by
- The company and the advisor
- Compensation
- Equity, a cash fee, both, or unpaid
- Length
- About 2 to 3 pages, initialled on every page
When to Use a advisor agreement
- A startup adding an industry expert to its advisory board in exchange for options
- A founder engaging a former executive for monthly strategy calls
- A small business paying an experienced adviser a monthly retainer
- Recording an unpaid mentor's role so confidentiality and IP are clear
- Listing advisors on a pitch deck or website with their written agreement to do so
What You Fill In
18 blanks, then the name and email of each person who signs: company, advisor.
1 The parties
- Effective date*
- Company*
- Company address
- Advisor's full name*
- Advisor address
2 The role
- Areas the advisor will help with*
- Expected time commitment*
- Title the advisor may use
- Term* 6 months · 12 months · 24 months
- Notice to end it early (days)*
3 Compensation
- Compensation* Equity · Cash fee · Equity and a cash fee · None (unpaid)
- Equity grant
- Equity vests
- Currency
- Cash fee
- The cash fee is paid per month · per hour · per meeting
- Expenses reimbursed without prior approval up to
4 Other terms
- Governing law*
5 Who signs
- Company signature and date, job title, initials on every page
- Advisor signature and date, initials on every page · The person giving advice.
What the advisor agreement Covers
- Advisory services
- Term
- Compensation
- Expenses
- Independent advisor
- Other activities and conflicts
- Confidentiality
- Intellectual property
- Ending the agreement
- General
Using the advisor agreement, step by step
1 Describe the role
List the areas the advisor will help with and a good-faith estimate of their time, such as "about 4 hours a month, including one call". Set the title they may use publicly, or leave it empty if the relationship should stay private.
2 Choose compensation
Pick equity, a cash fee, both, or none. For equity, describe the grant (for example, options over a number of shares) and how it vests. For cash, enter the amount and whether it is per month, hour or meeting.
3 Set expenses and term
Optionally set an amount up to which expenses are reimbursed without prior approval. Choose the term and the notice either side must give to end it early.
4 Send for signature
Add the governing law and the advisor's name and email. Once signed, arrange the board approval and grant documents for any equity.
Tips Before You Send It
- Equity is only granted when the board approves it and a grant agreement is signed. Diary that step so it is not forgotten.
- Vesting advisor equity over the term means an advisor who stops helping after three months does not keep the whole grant.
- Ask advisors to tell you about roles with competitors. The template requires this and lets you end the agreement immediately if a conflict arises.
- If the advisor will do substantial project work, a consulting agreement with a statement of work may fit better.
Sign It Online In Minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. VergeHR builds the PDF with every signature, date and initials box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in Files and emailed to everyone.
Advisor agreement: frequently asked questions
How much equity do startup advisors usually get?
It varies widely with the company's stage and the advisor's involvement. This template does not suggest a figure. Describe the agreed grant exactly, and check it with your board and legal adviser.
Is an advisor an employee?
No. The agreement treats the advisor as an independent contractor with no authority to bind the company and no employee benefits. How they are treated for tax depends on the actual relationship and local law.
What is the difference between an advisor and a board member?
An advisor gives advice but has no vote or legal duties as a director. A board member is formally appointed, votes on decisions and owes legal duties to the organisation. Use a board member agreement for that.
Can an advisor agreement be signed electronically?
Yes, for most purposes. Electronic signatures are generally valid for ordinary contracts in the US (ESIGN Act and UETA), the UK, the EU (eIDAS) and Canada. VergeHR keeps an audit trail with the signed PDF.