How to establish a startup and draw up your first contractAugust 27, 2020
Founders are encouraged, incentivized and pressured to begin transacting with customers as quickly as possible to drive growth and revenue. But making legal mistakes early in the game can create costly liabilities down the road.
That’s why we invited James Alonso from Magnolia Law and Adam Zagaris from Moonshot Legal to join us at TechCrunch Early Stage to give us a 360 overview of the legal side of running a startup. We’ve shared highlights from their presentations below, along with a video of the entire panel discussion.Corporate law 101 for startup founders
James Alonso gave us a presentation on company formation and getting funding. Maybe you’ve already created your startup, but if you’re still working on your own and don’t have any clients or employees yet, these tips are essential before you get your startup off the ground.
When you’re setting up a new company, it forces you to have a discussion about capital structure — who owns shares, how many shares and what kind of shares. There isn’t a single way to design a company on this front and we’ll look at some options later in this article. And because you’re starting a startup, you want to structure your company in a way that makes future financing easy.
Setting up a company also lets you put your IP in a single entity that you’re sharing with other shareholders. “One of the key things you’re doing when you’re forming a company is assigning the IP related to that company into a single entity that holds it all,” Alonso said.
Read more: feedproxy.google.com
A quick note about the reviews I do on this site. The product vendors may give me access to their products for free in order for me to do my review, alternatively, I may have bought the product myself. However I make no promises to vendors regarding what I write in my review. Should you click a link that takes you to a sales page for a paid product for sale this link will be an affiliate link and I will be paid a percentage of the sales price should you decide to invest in it.