side note: One shouldn't/can't invest in a ventured backed company -- one that issues shares -- unless you are "accredited," or in rare cases "sophisticated." Late yesterday afternoon, Dave McClure sent an email to all 500startup founders and mentors. It went like this: “Hey you! Ricky Martin was on! That man has amazing teeth.). MORE >>

Like other environments, most legal issues don’t result from fraud, but from ignorance on specific requirements, or simply never getting around to doing the things that common sense would tell you to do. Then you will only have pay tax on the increasing value of your shares when they are sold. Marty Zwilling. MORE >>

Startups often play fast and loose with equity; promising a small piece of the company to anybody who helps out, but never going through the legal process necessary to actually issue shares or the administrative exercise of maintaining proper stock ownership records. 500 shares of common stock”). Type and amount of equity (ex. MORE >>

Startups often play fast and loose with equity; promising a small piece of the company to anybody who helps out, but never going through the legal process necessary to actually issue shares or the administrative exercise of maintaining proper stock ownership records. 500 shares of common stock”). Type and amount of equity (ex. MORE >>

How many shares should be authorized? The number of shares “authorized” in the corporation’s charter is the maximum number the company can issue without amending its charter to authorize more. Authorizing too many shares is wasteful because state filing fees typically increase with the number of authorized shares. MORE >>