It’s one thing if your company is already a success. You don’t have to jump through all the hoops that startups do. You’ve earned your way. These tips really don’t apply to you. This content is a must read for any and all startups looking to get through the legal issues when just starting out.
3 Essential Facts for Start-Up
Essentially, there are several tips that can be given to clients. We are going to boil all of this down to a few essential facts. This will make it an easier read for many of you. It will also reduce the likelihood of reading all the extra fluff they tend to through in.
1) Your legal foundation should be set up at the very beginning. No company likes to invest so heavily in this stuff anyway. Your main concern is the development. When it comes to stocks, go cheap. This will help you avoid any tax issues later on.
2) Start as a corporation if you have a team instead of an LLC. If you have a partnership, you will need to select a corporation instead of the sole-proprietor of LLC. We encourage you to talk with your accountant to decide which one would be the most suitable for you due to tax purposes.
3) Equity incentives are what keeps it going. This is the bread and butter, so to speak. This is what will keep your team afloat. Ask a financial expert about your options before you even open the doors.
One final thought. Your IP needs to remain with the company. Make sure your set up will keep it within the family.
For more tips on this and other Palm Springs corporate law advice, please request a consultation from us.
Essentially, there are several tips that can be given to clients. We are going to boil all of this down to a few essential facts. This will make it an easier read for many of you. It will also reduce the likelihood of reading all the extra fluff they tend to through in.
1) Your legal foundation should be set up at the very beginning. No company likes to invest so heavily in this stuff anyway. Your main concern is the development. When it comes to stocks, go cheap. This will help you avoid any tax issues later on.
2) Start as a corporation if you have a team instead of an LLC. If you have a partnership, you will need to select a corporation instead of the sole-proprietor of LLC. We encourage you to talk with your accountant to decide which one would be the most suitable for you due to tax purposes.
3) Equity incentives are what keeps it going. This is the bread and butter, so to speak. This is what will keep your team afloat. Ask a financial expert about your options before you even open the doors.
One final thought. Your IP needs to remain with the company. Make sure your set up will keep it within the family.
For more tips on this and other Palm Springs corporate law advice, please request a consultation from us.
