Startup Professionals Musings
SEPTEMBER 27, 2023
Every entrepreneur needs to understand the following basics, to be addressed at company formation, as they engage a qualified attorney to draw up the paperwork: Allocate founder’s stock commensurate with commitment. Key founder vesting should have no cliff. Retain the right to reclaim stock from anyone leaving the startup.
David Teten
MARCH 14, 2018
Managers of VC funds typically want to grow their business aggressively, just like the founders we back. Among the sites we have found most helpful with practical guides for founders: Biztree , First Search , Foundersuite , Goodwin Founders Workbench , Guides.co , Inc.com , and StartupRocket. .
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Startup Professionals Musings
JANUARY 15, 2021
Every entrepreneur needs to understand the following basics, to be addressed at company formation, as they engage a qualified attorney to draw up the paperwork: Allocate founder’s stock commensurate with commitment. Key founder vesting should have no cliff. Retain the right to reclaim stock from anyone leaving the startup.
YoungUpstarts
AUGUST 25, 2015
This can also vary as you grow and as some owners pull back from managing the LLC. Owners of corporations also pay taxes when they are paid dividends or profit from sale of the stock, which is why it is common to say that corporations are “double-taxed.” You can control the power of your company’s stock by issuing different classes.
Startup Professionals Musings
FEBRUARY 8, 2019
To avoid the tax implications of co-mingling personal and business funds and assets, create your business entity before you hire anyone or spend money building the product. File founder stock election so no taxes are due until exit. Many entrepreneurs follow old shoebox habits in managing expenses until the company launches.
David Teten
AUGUST 19, 2019
John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. RBI structures help to protect the equity of both founders and investors. However, according to Bryce Roberts, co-founder of Indie.VC, only 0.6%
Startup Professionals Musings
JANUARY 29, 2018
Unfortunately, in my years since as a small business advisor, I have seen too many founders squander this asset through a lack of understanding of some basic legal and operational issues, or by handing out nominally “free” stock to the wrong people at the wrong time. Buying back stock on the open market may cost a huge premium.
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