Remove Accredited Investor Remove Cofounder Remove Entrepreneur Remove Vesting
article thumbnail

The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

Mistake #3 : not setting-up vesting schedules (at 17:19). Mistake #5 : not doing your due diligence on potential investors (at 38:36). By the way, my favorite part of the video is when an entrepreneur (and former lawyer) walks in late to the workshop and acknowledges that she made the first three mistakes (at 33:14).

article thumbnail

The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

i) Rule 506 preempts State law, which means all you have to do is file a Form D and pay a filing fee; and (ii) no disclosure requirement/PPM Possible to sell to “friends and family” (e.g., issues to address include: How have they treated their other portfolio companies? (i)

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 New Venture Mistakes That Can Cost You The Business

Startup Professionals Musings

Here are five of the most common examples: Failure to document a Founder agreement at the beginning. This oversight can lead to the so-called “forgotten Founder” problem. Trouble with the IRS over Founders stock value. Entrepreneurs often put off the hassle and the cost of filing a patent until first funding.

Cost 363
article thumbnail

Five Legal Traps Every Entrepreneur Should Avoid

Startup Professionals Musings

Here are five of the most common examples: Failure to document a founder agreement at the beginning. This oversight can lead to the so-called “forgotten founder” problem. Early co-founders often drop out of the picture due to disagreements, and you forget about them, but they don’t forget about the verbal promises you made.

article thumbnail

5 Startup Legal Shortcuts That Can Be Expensive

Startup Professionals Musings

Here are five of the most common examples: Failure to document a Founder agreement at the beginning. This oversight can lead to the so-called “forgotten Founder” problem. Trouble with the IRS over Founders stock value. Entrepreneurs often put off the hassle and the cost of filing a patent until first funding.

article thumbnail

Five Legal Pitfalls That Sink Many Good Startups

Startup Professionals Musings

Here are five of the most common examples: Failure to document a Founder agreement at the beginning. This oversight can lead to the so-called “forgotten founder” problem. Trouble with the IRS over Founders stock value. Entrepreneurs often put off the hassle and the cost of filing a patent until first funding.

article thumbnail

What Is the “Walker Startup Package”?

Scott Edward Walker

We charge a flat fee of $2,000, plus filing fees, for up to three co-founders and it includes unlimited phone calls and emails. Thus, founders never have to worry about picking-up the phone and asking their lawyers questions. v=N1A44ShZfWo. Btw, in case you’re interested, I have also set forth below our checklist for startups.