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Should You Offer Equity Compensation to Employees?

Up and Running

If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Make sure you understand all of your options before making any decisions. When business owners decide to go down the route of equity compensation, there are two primary options to choose between.

Equity 60
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How to Pick the Right Attorney For Your Startup

Up and Running

Our attorney updated our operating agreement to include a “non-dilution clause” for this investor, and my business partner and I later found out how much this would cost our company—both financially and otherwise. Do they (or does their firm) have experience with intellectual property and patents?

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What Start-ups Should Know About Hiring a Lawyer

www.thedailymuse.com

What’s the typical hourly cost? While the hourly rate is certainly a crucial part of the costs, you’ll also want to consider the mix of lawyers that will doing your work. How much will it cost to incorporate your new start-up? And finally, a lawyer who surprises you with extra cost. Raising capital.

Hiring 56
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Do It Right The First Time, Part II: Visit the Doctor or House Call?

Gust

Readers can anticipate my next point in continuing the analogy: It makes no more sense for a non-lawyer to prepare fundamental legal, governance, equity and intellectual property documents than it would for a patient to self-diagnose and begin taking prescription-strength antibiotics or other medications. Caveat entrepreneur !

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Should You Share Equity with Consultants?

www.inc.com

Intellectual Property. Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. That cost him accounting fees, legal fees, and time because the financing round couldnt close until the arrangements were formalized.

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Most Common Early Start-up Mistakes

Both Sides of the Table

Would you want to run the risk that your former employer could have a claim against the intellectual property you’ve created because you broke company policies and developed your ideas on company resources? But these people seldom make retirement money from the stock options on these companies. Not worth it.

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ESOP Fables: Reviewing The Myths And Facts About Employee Stock Ownership Plans

YoungUpstarts

The company just needs to be large enough to generate a profit to substantiate the annual costs of maintaining the ESOP. In profitable S-corporation ESOP companies, the tax savings should be more than enough to offset such annual costs. Myth: An ESOP transaction requires that a majority of stock be transferred.

Stock 100