House Passes Crowdfunding Bill: FAQ’s for Entrepreneurs

Scott Edward Walker

Presumably, each stockholder will be required to execute a subscription agreement and/or stockholders’ agreement to address key issues such as transfer restrictions, rights of first refusal, drag-along rights, etc. Last week, the U.S.

Subscription accounting


According to a CBS Marketwatch article : Under the accounting method used in the past, the company would recognize a full month’s revenue from a subscription agreement, even if a deal was sealed in the middle of the month, for example. The effect of the accounting change is to defer a portion of the revenue that had previously been recorded during the month that the subscription started to the end of the contract. Ok, now for some boring accounting stuff.

A Startup Knows It Needs a Lawyer When:


Lawyer time required (including vesting agreements for founders): 3 to 6 hours. And each award to a given employee requires a separate grant agreement laying out the terms of the grant. You need a lawyer to create the plan and grant agreements (on the grant agreements, once you have the form, you can probably use it for other future grants of the same type).