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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

Mistake #3 : not setting-up vesting schedules (at 17:19). 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). you want to form a Delaware corporation. Mistake #3: Not Setting-Up Vesting Schedules.

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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?

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Do It Right The First Time, Part II: Visit the Doctor or House Call?

Gust

I urge all entrepreneurs to consult and develop a good working relationship with a qualified startup lawyer. Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. Caveat entrepreneur !

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Founders Shares: How do you split them up?

www.copelandfirm.com

This method is most often used by first-time entrepreneurs because it seems more “fair&# and is easy to get everyone to agree on it at the outset. Solutions to Divvying up Founders Shares In my experience, the best way to distribute founders shares is through unequal distribution with vesting.