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How to Form a Corporation

Up and Running

We’ll review some new language and concepts in this process, but once you’re done, you may never need to think about this stuff again. . Think of the entity formation process like doing your personal taxes—you must submit everything correctly, but you don’t need to understand every detail of the laws and codes surrounding the process.

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The Legal Side of Entrepreneurship

YoungUpstarts

Startups bear the costs of their financing, from the first seed investment to the sale of Series A stock. Debt also has a due date and interest rate to negotiate. Startups also must pay an inexpensive service fee for incorporating in Delaware. ” The Cost of Financing. Debt or convertible securities (e.g., If high U.S.

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The Ultimate Guide to Starting a Software Company

Up and Running

Since the term “cloud computing” was coined in 1996—at least as we have come to understand its meaning—the software as a service industry has exploded. If you use software like LivePlan, you can create this initial “lean plan” in under an hour and then spend your time where it really matters—on validating your idea.

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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

Mistake #5 : not doing your due diligence on potential investors (at 38:36). you want to form a Delaware corporation. S corp vs. C corp – “qualified small business stock” . Restricted Stock Purchase Agreement executed by all co-founders; unvested stock is repurchased upon departure.

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The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

If you would like to jump to different sections of the video, here’s how it breaks down: Mistake #1: forming the wrong entity (at 1:25) Mistake #2: not buttoning-down IP ownership issues (at 10:20) Mistake #3: not setting-up vesting schedules (at 17:19) Mistake #4: not complying with applicable securities laws (at 29:21) Mistake #5: not doing (..)

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The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

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