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Legal Checklist for Startups

Scott Edward Walker

Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ). Button-down IP ownership and assignment issues (see post here ). Incorporate in Delaware and qualify the company to do business in the state in which its principal office is located (see #2 here ).

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Bad Notes on Venture Capital

Both Sides of the Table

Less than you’ll probably grant your most junior employees in stock options? of the time I have no vested interest in having the debate. Stock Option plans. Him: Not so good. Obviously he’d be pissed off. I hadn’t really thought about it. Me: I know. You and everybody else. I’m bored of it.

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Most Common Early Start-up Mistakes

Both Sides of the Table

To the best of my knowledge US law allows you to work on your own resources and in your own hours and let you personally own your IP. In some countries outside the US (the UK for example) employers can specify in an employment contract that ANY IP you develop while you’re employed by that company is owned by them.

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

Gust

Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. Make escrow arrangements for restricted stock (i.e., Pick a name for the new legal entity (e.g., Newco, Inc.”) Caveat entrepreneur !

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What Is the “Walker Startup Package”?

Scott Edward Walker

Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ). Button-down IP ownership and assignment issues (see post here ). We charge a flat fee of $2,000, plus filing fees, for up to three co-founders and it includes unlimited phone calls and emails.

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Bad Notes on VC

Gust

Less than you’ll probably grant your most junior employees in stock options? of the time I have no vested interest in having the debate. Stock Option plans. How do you think they’ll feel if your next round is at a $50 million post money valuation and their hard-earned $25,000 is worth 0.05% of your company?

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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 (..)