Our experienced attorneys will make the legal aspects of starting your company effortless.
Prior to launching your company, there are a number of legal issues to be considered and legal documents to be executed. No two companies will have the same requirements (which is why personalized legal advice is so important) but below are some general services that we provide with the Launch Subscription.
How We Help
Negotiation and Review of Contracts Good contracts are vital to the success of your business. They define expectations, protect relationships and deter costly disputes. We will draft a Founders Agreement, Employment Agreements, and other agreements needed to launch.
Intellectual Property Protection We will draft an Inventions Assignment to ensure your company is the owner of all intellectual property created prior to incorporation. We will also review any Inventions Assignments that founders, employees, and advisors may be subject to from outside employment.
Equity Allocution and Vesting We will determine the best initial distribution to ensure that co-founders and employees stay motivated, tax liability is minimized, and founders retain control of the company.
Trademark Registration We will conduct a federal, state and common law search for your proposed trademark(s) and apply to register your mark(s) with the United States Patent and Trademark Office.
Compliance and Risk Management We will work with you to build a specific compliance and risk management strategy for your company. This will ensure that your startup is complying with all laws and regulations and minimize legal conflicts as you grow.
Incorporation We will determine which business entity will best meet your goals and file all the required documents to register your company.
Frequently Asked Questions
Q: What business entity is best for a startup?
A: If you're seeking funding, the answer is almost always, a C Corporation that is incorporated in Delaware.
Q: Why Delaware?
A: The short answer is because that’s what VCs want to see. Some will go as far as to say they won't even entertain a pitch from a company that's not incorporated in Delaware. They have good reason to feel that way. Delaware corporate law is THE corporate law. The statutes are thorough and have a ton of case law interpreting them, which means the laws are very clear. No one winds up paying lawyers exorbitant fees to structure a deal.
Q: Isn't an LLC or S Corporation Better for Tax Purposes?
A: You've likely heard of double taxation and pass-through taxation. Generally, neither are applicable to the startup because startups are not profitable.
Q: What legal documents do I need to launch my company?
A: In general, you will need:
-A Charter, which sets the number of stocks the startup authorizes and par value (the minimum amount stock can be sold for)
-Bylaws, a legal document that determines the rules and regulations for the startup's internal management
-Stock Purchase Agreements, which issue equity shares to the founders and typically include a vesting schedule
-a Shareholders Agreement, which covers a shareholder’s right to transfer his or her shares, rights of first refusal, redemptions upon death or disability, etc.
-Technology Assignment Agreements, which transfer ownership of intellectual property that was developed before incorporation to the startup;
-Confidential Information and Inventions Assignment Agreements, which broadly assigns anything related to the startup to the company
Employment Letters, which set the terms of employment for each cofounder; and
-Initial Board Consent, which formally approves the issuance of equity to the founders and appoints the officers of the startup.