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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 ). 4. 

How To Launch a Startup and Avoid Ending-up in Jail

Scott Edward Walker

Introduction I love working with startups – and trying to protect founders and watch their backs.  Potential Criminal Violations Employment Laws. 

4 Deadly Legal Mistakes That Startups Make

Scott Edward Walker

Vesting Restrictions.  The first deadly mistake relates to vesting restrictions.  IP Ownership.  code, logo, domain name, etc.)

If I Launched a Startup

The Startup Lawyer

Hell Yes. (9) Vesting Schedule for Founders Shares: 4 years with a One Year Cliff. (10) Consideration for Founders Shares: Cash & IP. (11) Handling of “Lost Founders&# : Lock Down the IP (then Wish Them Well).

NDA 47

Why Lawsuits Are On the Rise at Startups and What To Do About It

Both Sides of the Table

He had a stock option vesting program and had vested a significant amount of his stock but not all. Lawsuits are on the rise. For what?

Top Legal Mistakes Entrepreneurs Make

Deimar

Finally, completely understand who owns what as the relationship persists, especially in the case of intellectual property (IP).

The 5 Biggest Legal Mistakes That Startups Make

Scott Edward Walker

Cheers, Scott [link] Below is my personal outline for the workshop. issues to address include: How have they treated their other portfolio companies?

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder.

When Should A Company Be Formed Around an Idea?

Ask The VC

We’d suggest that you form a company (LLC or S-Corp is fine at this point), divide up the equity and make sure it is subject to vesting. Make sure that there is a strong agreement in place that contributes all the IP that you created during the weekend to the new company.

IP 75

Should a Founder License IP to a Startup?

The Startup Lawyer

Founder IP License Problem. Even if the founder offers the startup a completely startup-favorable license, the founder IP license scenario should be a non-starter for most startups. The problem is that even a free and exclusive license to the startup falls short of vesting IP ownership with the startup. Conclusion.

7 Lessons They Don’t Teach You In Crowdfunding School

Startup Professionals Musings

Keep all IP details close to the vest. How can you go wrong? Several crowdfunding successes have failed as a business.

Going Global: 8 Things to Consider If You Want to Expand Your Business

Up and Running

The choice of where to base your IP holding company has become a key strategic decision for a company’s board of directors.

Most Common Early Start-up Mistakes

Both Sides of the Table

Make sure you own your IP. You MUST have a legal agreement that stipulates that anybody working on the design, coding or testing of your system assigns any and all intellectual property (IP) created to your company. Founder vesting. Yesterday I wrote a blog posting on founder vesting (see here ). Not worth it.

IP 83

White-Label Mobile App Users: Who Owns Them?

The Startup Lawyer

If a startup gets paid via a revenue share arrangement, the potential exists for the large company to exercise their early-termination rights and get their white-label app’s users free-of-charge (or worse, the IP). Tags: Startup Issues IP mobile applications white label Nothing New. But Gowalla isn’t a white-label app.

What to do About that Chip on Your Shoulder?

Both Sides of the Table

Well – he had this awesome platform that was super technical – great IP. That they have something to prove. To be liked? To fit in?

Startup Founder Agreements

High Contrast

In one case the CEO had a different vesting schedule because he had spent a lot more time than the rest of the founding team on the idea. It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. There is some up-front vesting acceleration. This isn’t just CYA. Employee.

Bad Notes on Venture Capital

Both Sides of the Table

99.9% of the time I have no vested interest in having the debate. I’m just trying to be helpful because in this case more than any I truly understand the structure from both sides of the table. This week. On the phone … Me: So, you raised venture capital? Him: Yeah. We raised a seed round. About $1 million. Me: At what price?

Bad Notes on VC

Gust

99.9% of the time I have no vested interest in having the debate. I’m just trying to be helpful because in this case more than any I truly understand the structure from both sides of the table. This week. On the phone …. Me: So, you raised venture capital? Him: Yeah. We raised a seed round. About $1 million. Me: At what price? Me: With a cap?

6 Ways For Startups To Reduce Operating Costs

YoungUpstarts

Startup employees are unique because they typically have a vested interest in the success of the company. by Morgan Sims. Remain Flexible.

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. founders’ shares subject to vesting) and IRS filings for most favorable tax treatment of those shares. The risk is simply too great. 

Startup Valuation: How Much Is Your Company Worth?

Seed Stage Capital

Not only is it hard to find apples-to-apples comps, but funding valuation data is often kept close to the vest. They dazzle. Thanks David!

Do It Right The First Time: Avoiding “Janitorial” Legal Work

Gust

There are countless related subjects, such as what type of entity to form and in what jurisdiction, how to handle equity compensation and vesting arrangements, determining titles and Board membership, and so on.  I’ve written extensively on these subjects, as have other lawyers, notably Yokum Taku and Scott Edward Walker.  Good stuff!

IP 9

White-Label Mobile App Users: Who Owns Them?

The Startup Lawyer

If a startup gets paid via a revenue share arrangement, the potential exists for the large company to exercise their early-termination rights and get their white-label app’s users free-of-charge (or worse, the IP). Tags: Startup Issues IP mobile applications white label Nothing New. But Gowalla isn’t a white-label app.

Get Inside the Mind of an Angel Investor

Both Sides of the Table

TCP/IP (Transmission Control Protocol/Internet Protocol) : network transfer protocol, basically it defines requirements for network communications.

Don’t have a Founder’s Agreement? How to Break-up without Hating Each Other

Kevin Dewalt

Equity Vesting: Keep it Simple. Most founder’s agreements suggest 4-year vesting with a 1-year cliff. Here me discuss this on SoundCloud.

A Few Key People Really Can Make a Huge Difference

Both Sides of the Table

This article originally ran on TechCrunch.  I’m in Seattle this week. really liked BigDoor, MediaPiston, OpsCode, BuddyTV, SEOMoz and much more.

If I Launched a Startup

The Startup Lawyer

Hell Yes. (9) Vesting Schedule for Founders Shares: 4 years with a One Year Cliff. (10) Consideration for Founders Shares: Cash & IP. (11) Handling of “Lost Founders&# : Lock Down the IP.

Dear elizy: How should I split equity with my co-founders?  And how will that affect raising a seed round?

Hippoland

Ada is my professor, and we are using her lab, and the company is based on her research, though the IP is assigned to the company. First off, whatever you decide, you should implement vesting. Standard vesting practices in the Silicon Valley at this time of writing are 4 year vesting with a 1 year cliff. Good luck!

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder.

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 ). 4.  www.youtube.com/watch?v=N1A44ShZfWo.

You May Not Own That Logo…5 Reasons Why Startups Need Attorneys

UC Berkeley

Early stage startups tend to seek legal advice only when IP is involved. Advisors typically get.25% to 1% vesting monthly over 24 months. 3. That mindset can come back to bite entrepreneurs…hard. Here are some top picks: 1. You may not own that logo your friend designed for you…unless you’ve secured the rights. 2.

Filing a Charter Is Not a Startup Incorporation

The Startup Lawyer

Want to vest your founders’ shares ? And you can definitely forget about a technology transfer agreement or anything else IP-related. I’ve noticed a lot of recent articles promoting that a startup can “ skip the lawyer &# and incorporate via an online service. The 19 other “tasks&# they list? Little or no value.

Up Up Down Down Left Right Left Right B A Start

The Startup Lawyer

vesting schedule and company repurchase option ). What if your startup’s rockstar developer claims ownership of the startup’s IP?

PIPA and SOPA Need a New Name

Mark Birch

3261), introduced in the House in late October (which includes the most controversial parts of the Senate’s PROTECT IP Act (S. First, the vested interests ignore the threat because it is small and figure it will quickly die out. Foundational communication structures in jeopardy? Jobs destroyed? Startups squashed? Always.

CEO Friday: Why we don’t hire.NET programmers

blog.expensify.com

Expensify Blog. Expense Reports That Don't Suck. CEO Friday: Why we don’t hire.NET programmers. Some additional comments at the end. Brian.

Java 62

Startup Blog: Staff & Money or Money & Staff

Taffy Williams

The buyback or vesting ensures they have to work for a period to keep the stock or options. Basics are provided to help entrepreneurs. Now what?

Beware The Consultant

infochachkie.com

Allow the consultant to invest in your future success; in lieu of cash, grant them equity in the form of Non-qualified Options that vest based upon the attainment of quantifiable goals; keep in mind that adverse tax consequences may be associated with such equity grants, so check with your accountant before deploying this form of compensation.

Series Seed Financing Documents

www.seriesseed.com

It would be helpful to get a California standard employee manual, employee contract/agreements, IP ownership release to company, and confidentiality. Standard 1-way/bi-lateral NDA's, standard templates for an employee manual, employee contract/agreements, IP ownership release to company are on my wish-list too. SeriesSeed.com.

Setting And Shaping A Strong Startup Culture

Seed Stage Capital

As a result, their ‘story is kept close to the vest. Over the past several years, Ive had meaningful interactions-- meetings, calls, etc.--

Crazy! 189 Answers To The Top Startup Questions On Your Mind

maplebutter.com

Maple Butter. Search for: Videos. About. You are here: Home » Hiring » Crazy! 189 Answers To The Top Startup Questions On Your Mind. Crazy!