Authorized Shares: Where Do They All Go?

Authorized Shares: Where Do They All Go?

When forming a new company, founders are immediately faced with the question of how many shares the company should initially authorize (i.e. the maximum number of Common shares the company may initially issue). This information goes right in the company’s Charter, so...
Vesting: The Founders’ Friend

Vesting: The Founders’ Friend

When founders are ready to grant founder stock, the vesting question naturally arises. The founder imagines a scenario where their company is sold and they are fired, and worries how their ownership would be impacted. A green founder might think that the solution is...
Crowdfunding Options for Startups

Crowdfunding Options for Startups

Early-stage companies need tremendous amounts of cash to grow rapidly. Yet, angel groups and venture-capital firms are not usually a realistic option for early stage startups. Additionally, entrepreneurs often find that financing options such as savings, friends, family, and bank loans, even if available, cannot cover the high startup costs attendant to growing a business. Recently, the media has anointed “crowdfunding” as the solution to this startup capital gap. But what exactly is crowdfunding?

Entity Selection for Startups

Entity Selection for Startups

Entrepreneurs will face a huge number of decisions as they move from concept to commercialization. One of the first major decisions is what type of legal entity to form in order to move their great ideas forward. Why does it matter? Because different entities have very different rules regarding limited liability, management and control flexibility, capital structure, tax efficiency and eligible investors.