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Contracts are the mechanism by which people (and companies) create a legally valid or enforceable agreement between themselves. Most people encounter them regularly as adults—for example, when signing an offer letter for a new job—but relatively few people ever find a need to create one from scratch.
In our recent webinar When, Why, & How to Incorporate Your High-Growth Startup, Dan DeWolf of Mintz Levin and I discussed a number of topics related to incorporation, many of which we’ve touched on previously on this blog or in my book, The Startup Checklist: 25 Steps to a Scalable, High-Growth Business.
In a startup’s early days, many founders struggle with deciding how and when to make their business activities “legitimate”—especially when they are still trying to decide whether or not to fully commit to the project as a new business. While some hesitation is understandable, putting off the process of separating your business’s finances from your own can create unnecessary complications down the road. Keeping busines...
When you create, design, or invent things, the rules of intellectual property (IP) determine who owns your creations, whether or not you can prevent other people from copying them, and whether or not you yourself can use them freely. If you are starting a company, you should know enough about IP to make intelligent decisions about your business to add value and reduce risk.
An 83(b) election accelerates your tax obligation, so you pay tax sooner on the value of the stock at grant rather than its value when it vests. Accelerating your tax obligation may sound like a bad idea, and sometimes, it is: for example, if you think the stock will become worthless or drop in value, you should probably not accelerate your tax obligation. In addition, if the stock being issued to you is worth a signif...
