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How to Form a Corporation

Up and Running

California can be appealing to California-based investors (particularly fast-growth tech companies) despite high income and corporate taxes, and franchise fees for all businesses regardless of size. This article will not delve into the more complex options and requirements for a corporation’s stock.

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Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

Typically, investors will be interested in “preferred” stock, which comes with special (aka “preferred”) rights, such as receiving a certain payout before anyone who holds “commonstock. M&R is a national law firm with offices in California and New York. The ownership structure of an LLC is a blank slate.

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Dear Founders: Here Are Three IP Mistakes to Watch-Out For

Scott Edward Walker

Usually this is done as part of the founder’s Restricted Stock Purchase Agreement pursuant to which the IP is contributed to the startup as full or partial consideration for the shares of common stock issued to him in a tax-free transaction under Section 351 of the Internal Revenue Code.

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What is convertible equity (or a convertible security)?

Startup Company Lawyer

There are some features in the sample documents that I like — such as the conversion discount being paid in common stock — that are in the form of convertible debt documents used by YC. Why convertible equity is better than preferred stock. Making it equity removes this issue.

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Startups and IP Ownership Issues

Scott Edward Walker

prior to incorporation is typically assigned to the company as part of the founder’s restricted stock purchase agreement (or a separate assignment agreement). Founders should also make sure that when they leave their prior employer they don’t take anything with them (e.g., electronic files, prototypes, customer lists, etc.).

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3 IPOs and the Lessons They Hold for Today’s Startups

ReadWriteStart

The well-known ridesharing giant hit the market this year with a target price of $45 dollars per share, with 180 million shares of common stock available at launch. On the day before Fiverr’s stock made its debut on the market, another IPO happened that nearly eclipsed it — in the news headlines, at least.

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Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Service companies are increasingly looking to get into work-for-equity relationships," says Peter Wendell , managing director of the Menlo Park , California -based venture capital firm Sierra Ventures and a faculty member at Stanford Business School. But that hasnt deterred outfits like Arizona Bay.

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