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Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

Owners of corporations also pay taxes when they are paid dividends or profit from sale of the stock, which is why it is common to say that corporations are “double-taxed.” While this isn’t an impossible task, it can be an expensive hassle and force you to wait longer for the sale to be completed. Verdict : Corporation.

LLC 100
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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). Moreover, I recently saw this problem in the context of the sale of startup we were representing. electronic files, prototypes, customer lists, etc.). code, a patent, etc.)

IP 40
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Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Sales & Marketing | Wednesdays. SALES & MARKETING. 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. Finance | Tuesdays.

Arizona 40
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Do It Right The First Time, Part II: Visit the Doctor or House Call?

Gust

Take any steps needed to qualify Newco to conduct the business it plans to conduct wherever it’s located (for example, a filing made in California qualifying a Delaware corporation to do business there if the management team is located in San Francisco). Make escrow arrangements for restricted stock (i.e., Office and equipment leases.

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Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

In other words, in the event of the startup’s “acquisition” (which is often broadly defined to include a merger, change of control or sale of substantially all its assets), the maturity date of the note would be accelerated, and the amount of the loan, plus interest, would become due at the closing of the acquisition.

Finance 64