7 Legal Documents for Startups. When launching a startup, you want to make and keep your startup as valuable as possible. But in order to do that, your tech startup needs to ensure that (a) the intellectual property is owned by the startup, and (b) the co-founders who own the startup have proper incentives and rules to handle inevitable contingencies. Thus, your tech startup should have the following 7 legal documents: Charter File a charter with the secretary of state and get your startup incorporated.
Bylaws Who gets to vote? Shareholders Agreement The shareholders agreement governs the relationship between the shareholders of the company and touches upon issues like a shareholder’s right to transfer his or her shares, rights of first refusal, redemptions upon death or disability, etc. Stock Purchase Agreement A stock purchase agreement is made between each shareholder and the corporation, which regulates the transfer and sale of the corporation’s stock to the shareholder. Technology Assignment Agreement Conclusion. What’s on this site. Start-Up Legal and Licensing To-Do List for Small Businesses | Legal > Commercial Law from AllBusiness.com.
While adhering to the many laws and ordinances that govern start-up businesses may seem daunting at first, you will have to start somewhere. Here is a basic to-do list for getting started on your way to having a legal business: Set up a filing system for all documents. Get letterhead stationary, business cards, and all necessary printed matter, including standard contracts, invoices, and receipts printed with the company or corporate name.
Set a policy that all contracts and business agreements of any type will be in writing and that there will be a written record of each and every transaction. Obtain all necessary local business licenses and permits, then display as required. Make sure that all personal licenses necessary for your business have been obtained and are displayed as required by state law. Since obtaining some licenses and permits may take several weeks, it is to your advantage to start well in advance of your projected grand opening or launch date. If I Launched a Startup. Here’s what I’d do in the beginning: Incorporation (1) Entity Choice: Corporation or Corporation (2) State of Incorporation: Delaware (3) Authorized Shares in Charter: 10,000,000 Shares (4) Type of Shares: Common Stock (5) Par Value of Common: $0.0001 (6) Initial Founders Issuance: 8,000,000 Shares (7) Founders Equity Split: Depends on the Team, But Quickly and After the Awkward & Difficult Conversations (8) Vest Founders Shares?
: Hell Yes (9) Vesting Schedule for Founders Shares: 4 years with a One Year Cliff (10) Consideration for Founders Shares: Cash & IP (11) Handling of “Lost Founders”: Lock Down the IP (then Wish Them Well) Raising Capital (1) Length of NDA: 0 pages (2) Fees Paid to Pitch my Startup: $0 (3) Investors: Accredited Investors (4) Structure of First Capital Raise up to $1MM: Convertible Notes 4 Years with a One Year Cliff is the typical vesting schedule for startup founders’ stock. Authorized Shares is the maximum amount of shares of stock a startup can issue. Business Legal Center.