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You Don’t Need Delaware to Start Your Company

Startup Professionals Musings

It used to be true that “everyone” incorporated in Delaware due to its more favorable terms, but many of these terms simply don’t apply to startups, or the differences don’t exist anymore. Tags: startup incorporation Arizona Delaware business. I live in Arizona, so I’ll use that state as an example. Now is the time to get started.

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More Tech Startups are LLCs

Austin Startup

Background Reading: When LLCs Make Sense for Startups Not Building a Unicorn If you have spent almost any time reading about the basics of startup legal issues, you know that Delaware C-corps are the default organizational structure for a “classic” tech startup (software, hardware) planning to raise angel/VC money and scale.

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Venture Capital Term Sheets – Redemption Rights

Scott Edward Walker

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. Moreover, there are significant restrictions under applicable State law regarding redemptions if the company does not have the legally-available capital.

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How to Minimize the Red Tape and Taxes of a Startup

Startup Professionals Musings

If you are certain that you are building a large national corporation with more than 100 investors, and multiple classes of stock, then you might as well start with a Delaware or Nevada C-Corp. A few states, like Delaware and Nevada, offer tax advantages to large companies. I’ll offer you a few simple rules of thumb.

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The Summer of Initial Coin Offerings

Seeing Both Sides

Goldman Sachs and CB Insights recently reported that startups have raised over $1 billion in Initial Coin Offerings (ICOs) this summer — more than the total amount of venture capital raised during the same period. Need for growth capital. A company that can successfully raise money in an ICO may never need venture capital again.

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The Summer of Initial Coin Offerings

Seeing Both Sides

Goldman Sachs and CB Insights recently reported that startups have raised over $1 billion in Initial Coin Offerings (ICOs) this summer — more than the total amount of venture capital raised during the same period. Need for growth capital. A company that can successfully raise money in an ICO may never need venture capital again.

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Venture Capital Red Flag Checklist 

abovethecrowd.com

Delaware law requires a board of directors, and these directors are tasked with a “fiduciary duty” to look after the best interest of the corporation. The post Venture Capital Red Flag Checklist appeared first on Above the Crowd. The Lack of a Legitimate Board.