Growthink Blog
JANUARY 24, 2011
The question is whether they need to issue common or preferred stock. The answer depends on how and what rights are defined in the preferred stock. The liquidation preference means what is sounds - namely that preferred stock holders with this right get all of their money back (i.e.
Gust
NOVEMBER 28, 2023
That’s what you as a founder will have, which is why it’s also known as founders’ stock. There is a different kind of stock that investors can choose to purchase, called preferred stock. While the name makes it seem preferable to common stock, preferred is not inherently better, it’s just different.
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Startup Professionals Musings
NOVEMBER 30, 2015
The name and the type have to fit, or expensive rework will be required later. A C-corporation is more complex and expensive, and is recommended only if you expect to pitch to professional investors who demand preferred stock, or to more than 100 potential shareholders.
Both Sides of the Table
JULY 22, 2010
Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating. No gotchas. No option pool shuffle.
Up and Running
AUGUST 28, 2019
Give your company a name. Name your trusted inner circle of company leaders (or just yourself). You’ll need to pay “foreign qualification” fees when you register, name a “registered agent,” pay “franchise taxes,” and make required annual reports to Delaware. . Give your business a name. Will not be rejected by your state.
YoungUpstarts
AUGUST 25, 2015
Stocks are issued at the time the company is formed, and more can be issued over time. You can control the power of your company’s stock by issuing different classes. The ownership structure of an LLC is a blank slate. LLCs do not have these required formalities unless they want them.
Both Sides of the Table
JULY 29, 2010
The downside is that people need to buy their stock. I talked also about 409a valuations and why common stock purchases cost less than preferred stock purchases. << we then discussed the need to do trademarks on your company and your key brand names. Do it early. Minutes 11-16 in the video. <<
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