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The Legal Side of Entrepreneurship

YoungUpstarts

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. ” The Cost of Financing.

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How to Work with Lawyers at a Startup

Both Sides of the Table

Shame about not getting it in legal writing that you owned the original IP. 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?

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If I Launched a Startup

The Startup Lawyer

2) State of Incorporation: Delaware. (3) 4) Type of Shares: Common Stock. (5) 2) State of Incorporation: Delaware. (3) 4) Type of Shares: Common Stock. (5) 10) Consideration for Founders Shares: Cash & IP. (11) 11) Handling of “Lost Founders&# : Lock Down the IP. 5) Par Value of Common: $0.0001.

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If I Launched a Startup

The Startup Lawyer

2) State of Incorporation: Delaware. (3) 4) Type of Shares: Common Stock. (5) 2) State of Incorporation: Delaware. (3) 4) Type of Shares: Common Stock. (5) 10) Consideration for Founders Shares: Cash & IP. (11) 11) Handling of “Lost Founders&# : Lock Down the IP (then Wish Them Well). Hell Yes. (9)

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Legal Checklist for Startups

Scott Edward Walker

Incorporate in Delaware and qualify the company to do business in the state in which its principal office is located (see #2 here ). Button-down IP ownership and assignment issues (see post here ). Form a corporation — not an LLC (see post here ) or a partnership (see post here ).

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

Gust

Form a legal entity to operate the business (we’ll use a Delaware corporation as an example for Newco). Make escrow arrangements for restricted stock (i.e., Consummate the stock issuances, make any necessary securities filings and issue the corresponding stock certificates. Appoint Newco’s initial Board of Directors.

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What Is the “Walker Startup Package”?

Scott Edward Walker

Incorporate in Delaware and qualify the company to do business in the state in which its principal office is located (see #2 here ). Button-down IP ownership and assignment issues (see post here ). Form a corporation — not an LLC (see post here ) or a partnership (see post here ).