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. Newco, Inc.”) MORE >>

Although their book is written for businesses of all sizes, I believe the principles apply especially to startups as follows: Increase return on equity invested. Intellectual property (IP). All too many startups are founded simply on the basis of a new and exciting technology invented by an industrious technologist. MORE >>

If there is more than one founder, the likelihood of an argument about how the equity should be split in the new company increases dramatically.  Incorporating a company and issuing stock to the founders will help prevent misunderstandings among the founders about equity splits.  Creating intellectual property.  Funding.  MORE >>

It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. For example, without a clear vehicle (a company) to contribute intellectual property into, a founder who walks away may mean that the future company won’t own its own IP. This isn’t just CYA. Urban legends. MORE >>

Piercing the Corporate Veil – Sweat Equity Consulting. But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. If you did, why would you be consulting for sweat equity instead of investing as a VC or for yourself? " So why put in sweat equity? Summary. MORE >>