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Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

One of the first actions you will take with your startup is to organize your company a separate legal entity to protect yourself from personal liability for the company’s debts. In the tech startup context, you’ll typically choose between a Corporation and a Limited Liability Company (“LLC”). Verdict : Corporation.

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Startups and IP Ownership Issues

Scott Edward Walker

For many startups, intellectual property (IP) is their most valuable asset. Below are the three most common IP-related mistakes that startups make — the first of which I discuss in this brief video with Jason Calacanis. This is a particular concern if the startup is in the same space as a founder’s prior employer.

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What is convertible equity (or a convertible security)?

Startup Company Lawyer

Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds. However, most typical convertible debt issued by startups have a maturity date of typically one year or later from the time of issuance. Background.

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Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Sales & Marketing | Wednesdays. Advisor. ); STARTUP. 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.

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

Gust

In Part I , I gave a quick summary of the who, when and why of forming and documenting a new startup company. This week we’ll delve into what , exactly, is necessary or desirable to lay a solid legal foundation for a startup to build upon. Make escrow arrangements for restricted stock (i.e., Newco, Inc.”) Yes, it’s a mouthful.

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Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

What Happens If a Startup is Acquired Prior to the Note’s Conversion to Shares of Preferred Stock? As discussed in part 1 , in the context of a seed financing, a convertible note is a loan that typically automatically converts into shares of preferred stock upon the closing of a Series A round of financing.

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