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How to Work with Lawyers at a Startup

Both Sides of the Table

Founded it as a California LLC but your potential VC wants a Delaware C-Corp? Forget to get around to setting up that Employee Stock Option Plan and want to be able to give the early guys their options at a low strike price? He mostly covers Southern California. Shame about that pesky FAS 157 ruling.

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Most Common Early Start-up Mistakes

Both Sides of the Table

I don’t know 100% that this is true in all 50 states (if any lawyers read this please put notes in comments section) but I’m pretty darn sure that this is statuary law in California. Assuming normal valuations at fund raising rounds you’ll be down to 6-12% after you’ve created a stock-option pool and raised capital.

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Should Early Stage Startups Move to Austin because of Capital?

Austin Startup

Paying 0% in state income tax in Texas versus up to ~10% in California or ~6.5% The exodus of Silicon Valley techies to Austin has largely been fuelled by a quality of life that compares to California, but comes at half the cost of living. That’s helpful in a couple of ways. On the one hand, your runway will last that much longer.

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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

LLC’s are geared for private equity funds, hedge funds and real estate guys, not startups, for a number of reasons: (i) extremely complicated tax partnership rules; (ii) creates capitalization/capital raising problems – e.g., essentially does not allow for stock options plans and convertible notes, etc.; (iii)

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What Can a Startup Lawyer Help With?

The Startup Magazine

States like California require any website that collects personal information about state residents to make a Privacy Policy available on its website. As soon as your start issuing stock of your company, complying with State and Federal Securities Regulations is mandatory.

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6 Hurdles For Going Public Through A Reverse Merger

Startup Professionals Musings

The cost of the shell, plus the cost of navigating the process, can now easily exceed a half-million dollars, depending on the shell company, according to The Labrecht Group , a law firm based in Irvine, California and Salt Lake City. This approach is not for entrepreneurs already out of money. Being a public company isn’t cheap or easy.

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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

issues to address include: How have they treated their other portfolio companies?