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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. 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? Founded it as a California LLC but your potential VC wants a Delaware C-Corp?

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Lockdown Lost-Founder IP

The Startup Lawyer

Now if your startup received a $5MM Series A investment from a venture capital firm, how many developers (that you can recall) would come out of the shadows of the internet and claim to be your startup’s long lost founder? But if your startup becomes a wild success, the developer will. How to Lock Down the IP. Conclusion.

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How Great, Operationally-Focused CFO’s Can Transform Your Business

Both Sides of the Table

What I love about my job is getting to see teams of super-early-stage companies develop ideas that while raw have potential to make an impact on the market. than to have to deal with healthcare benefit options, vacation policies, health-and-safety regulations and so forth. Legal threats from other IP holders? On and on and on.

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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. Make sure you own your IP.

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The When to Incorporate Decision-Matrix

The Startup Lawyer

4) Is your startup hiring developers or designers? 5) Is your startup granting stock options or other equity compensation? 8) Is your startup signing contracts with third-party companies for business services (not for IP creation or development)? No –> 0 points. (3) Yes –> 5 points.

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

Gust

I urge all entrepreneurs to consult and develop a good working relationship with a qualified startup lawyer. Most startups will involve legal counsel whenever doing anything involving the company’s securities, such as adopting a stock option plan , making grants under the plan, issuing convertible notes in a financing round , and so forth.

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When do I need to incorporate a company?

Startup Company Lawyer

Please keep in mind that even if a company is incorporated, founder stock purchase agreements with repurchase rights over unvested stock if founders leave are not included with the documents from typical online incorporation services. Issuing stock options. Creating intellectual property.

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