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If I Launched a Startup

Posted 17 Mar 2010

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

152 Comments
  • Sandro
    Posted at 10:06h, 17 March Reply

    Absolutely brilliant cheatsheet – wish I'd had this years ago.

  • Sandro
    Posted at 05:06h, 17 March Reply

    Absolutely brilliant cheatsheet – wish I'd had this years ago.

  • Jake Good
    Posted at 10:27h, 17 March Reply

    Love the post! There should be more of this stuff out there… it really helps geeks who have perfection or OCD research problems… as they don't have to procrastinate by wasting time "trying" to find this information! :)

    • RJ
      Posted at 16:09h, 06 May Reply

      Agreed!

  • Jake Good
    Posted at 05:27h, 17 March Reply

    Love the post! There should be more of this stuff out there… it really helps geeks who have perfection or OCD research problems… as they don't have to procrastinate by wasting time "trying" to find this information! :)

    • RJ
      Posted at 11:09h, 06 May Reply

      Agreed!

  • Lar
    Posted at 12:01h, 17 March Reply

    Great post, thanks! Any similar suggestions for a side project pre-startup things to take care? ;)

  • Lar
    Posted at 07:01h, 17 March Reply

    Great post, thanks! Any similar suggestions for a side project pre-startup things to take care? ;)

  • Corey
    Posted at 12:18h, 17 March Reply

    I must say, I love the conciseness of this post. The linking is also quite clever.

  • Corey
    Posted at 07:18h, 17 March Reply

    I must say, I love the conciseness of this post. The linking is also quite clever.

  • Gabriel Weinberg
    Posted at 12:30h, 17 March Reply

    I don't see the point of issuing that many shares. I've always issued 1,000 and split up 100 initially the founders. 1,000 is enough to get the % breakdowns you need and you aren't charged for having that many shares outstanding: http://www.corp.delaware.gov/frtaxcalc.shtml

  • Gabriel Weinberg
    Posted at 07:30h, 17 March Reply

    I don't see the point of issuing that many shares. I've always issued 1,000 and split up 100 initially the founders. 1,000 is enough to get the % breakdowns you need and you aren't charged for having that many shares outstanding: http://www.corp.delaware.gov/frtaxcalc.shtml

  • Ryan Roberts
    Posted at 12:37h, 17 March Reply

    @ Gabriel – Yes, the metrics are the same with 100 shares or 10 million, but people tend to like the optics of larger share numbers. I find this especially true with the employees when it comes to option #'s.

    Also, you can escape the franchise tax issue by using the "Assumed Par Value Method" which I wrote about in The Delaware Freak-out.

  • Ryan Roberts
    Posted at 07:37h, 17 March Reply

    @ Gabriel – Yes, the metrics are the same with 100 shares or 10 million, but people tend to like the optics of larger share numbers. I find this especially true with the employees when it comes to option #'s.

    Also, you can escape the franchise tax issue by using the "Assumed Par Value Method" which I wrote about in The Delaware Freak-out.

  • bubu
    Posted at 13:01h, 17 March Reply

    Those options are "by the book". If you don't look for venture capital don't make sense.

  • bubu
    Posted at 08:01h, 17 March Reply

    Those options are "by the book". If you don't look for venture capital don't make sense.

  • Justin
    Posted at 13:30h, 17 March Reply

    Doesn't it depend which state you're operating in? Since you might have to also file as a foreign entity and pay even fees.

  • Justin
    Posted at 08:30h, 17 March Reply

    Doesn't it depend which state you're operating in? Since you might have to also file as a foreign entity and pay even fees.

  • John Farrell
    Posted at 13:32h, 17 March Reply

    Or you could just not worry about this until you build something people actually like. ;)

  • John Farrell
    Posted at 08:32h, 17 March Reply

    Or you could just not worry about this until you build something people actually like. ;)

  • PremierInterns.com
    Posted at 15:18h, 17 March Reply

    So glad I read this post. Very straightforward and is going to come in handy because currently we're looking for seed funding. Thanks.

  • PremierInterns.com
    Posted at 10:18h, 17 March Reply

    So glad I read this post. Very straightforward and is going to come in handy because currently we're looking for seed funding. Thanks.

  • Ryan Roberts
    Posted at 15:20h, 17 March Reply

    @ Justin – You are correct, quite likely I'll have to pay foreign incorporation fees in my home state. I'm ok with that for various reasons (including not wanting to do a later reincorporation merger with Delaware). I assume I'm going to have to move there eventually.

    @ John – True. You can wait to incorporate until you have "something". Only downside(s) is that it may be harder to track down "lost founders" and you won't be able to start your long term capital gains holding period until you actually issue shares.

  • Ryan Roberts
    Posted at 10:20h, 17 March Reply

    @ Justin – You are correct, quite likely I'll have to pay foreign incorporation fees in my home state. I'm ok with that for various reasons (including not wanting to do a later reincorporation merger with Delaware). I assume I'm going to have to move there eventually.

    @ John – True. You can wait to incorporate until you have "something". Only downside(s) is that it may be harder to track down "lost founders" and you won't be able to start your long term capital gains holding period until you actually issue shares.

  • augusto
    Posted at 15:58h, 17 March Reply

    WOW!

    I never seen such simplicity to describe clearly the hell to incorporate, a so on.

  • augusto
    Posted at 10:58h, 17 March Reply

    WOW!

    I never seen such simplicity to describe clearly the hell to incorporate, a so on.

  • Scott
    Posted at 16:53h, 17 March Reply

    All of your options assume you want to look for Venture Capital.

    What if you follow the 37signals.com/rework route and want to stay small? Would your answers change?

  • Scott
    Posted at 11:53h, 17 March Reply

    All of your options assume you want to look for Venture Capital.

    What if you follow the 37signals.com/rework route and want to stay small? Would your answers change?

  • Gavin Hall
    Posted at 16:58h, 17 March Reply

    Great resource, second that comment above about seeing this format used more often.

  • Gavin Hall
    Posted at 11:58h, 17 March Reply

    Great resource, second that comment above about seeing this format used more often.

  • C. Enrique Ortiz
    Posted at 17:49h, 17 March Reply

    Very useful. Thanks!

    ceo

  • C. Enrique Ortiz
    Posted at 12:49h, 17 March Reply

    Very useful. Thanks!

    ceo

  • Al Brown
    Posted at 21:02h, 17 March Reply

    why a 1 year cliff? so you work for 11 months and walk away with nothing, while collecting no salary most likely? who would sign up for that? I think thats appropriate for employees getting a salary but for a founder?

  • Al Brown
    Posted at 16:02h, 17 March Reply

    why a 1 year cliff? so you work for 11 months and walk away with nothing, while collecting no salary most likely? who would sign up for that? I think thats appropriate for employees getting a salary but for a founder?

  • Ryan Roberts
    Posted at 22:59h, 17 March Reply

    Al – You can institute a provision that provides for full or partial acceleration upon firing "without cause" or the founder leaving "without good reason".

  • Ryan Roberts
    Posted at 17:59h, 17 March Reply

    Al – You can institute a provision that provides for full or partial acceleration upon firing "without cause" or the founder leaving "without good reason".

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  • Sachin
    Posted at 01:39h, 18 March Reply

    it is the most sought after cheat-sheet..thanks a lot

  • Sachin
    Posted at 20:39h, 17 March Reply

    it is the most sought after cheat-sheet..thanks a lot

  • Rajiv
    Posted at 07:54h, 18 March Reply

    Can you also suggest a incorporation service for non-US residents? There are lots of services out there and they charge anywhere from $300 to $800.

  • Rajiv
    Posted at 02:54h, 18 March Reply

    Can you also suggest a incorporation service for non-US residents? There are lots of services out there and they charge anywhere from $300 to $800.

  • Brent
    Posted at 08:40h, 18 March Reply

    Thanks Ryan. Even for an Australian startup, your advice is very helpful… just not the Delaware bit. :)

  • Brent
    Posted at 03:40h, 18 March Reply

    Thanks Ryan. Even for an Australian startup, your advice is very helpful… just not the Delaware bit. :)

  • Daniel
    Posted at 10:41h, 18 March Reply

    Is there any particular reason you would choose Delaware instead of Nevada?

  • Daniel
    Posted at 05:41h, 18 March Reply

    Is there any particular reason you would choose Delaware instead of Nevada?

  • amit
    Posted at 10:51h, 18 March Reply

    Super post.

    Do you need to have a local presence (or agent) to incorporate in Delaware? For example we're in CA so how do we find a local agent in DE?

  • amit
    Posted at 05:51h, 18 March Reply

    Super post.

    Do you need to have a local presence (or agent) to incorporate in Delaware? For example we're in CA so how do we find a local agent in DE?

  • Eric Greenberg
    Posted at 12:18h, 18 March Reply

    If you could drop "Protecting Intellectual Property" in between those two, I think this would complete me.

  • Eric Greenberg
    Posted at 07:18h, 18 March Reply

    If you could drop "Protecting Intellectual Property" in between those two, I think this would complete me.

  • Ryan Roberts
    Posted at 12:51h, 18 March Reply

    @ Rajiv – I don't have a rec for you, as I haven't used any of them.

    @ Daniel – DE>NV simply because of future issues and I'm not concerned about IRS information sharing.

    @ Amit – Yes, you need to have a registered agent if you incorporate in Delaware (or any other state you are registered with). I typically use CT Corp or BlumbergExcelsior. There are many others.

    @ Eric – Sounds like a good idea. I'll also include stuff like "Docs we signed as co-founders" and things re incentive compensation in a future revision or just new post.

  • Ryan Roberts
    Posted at 07:51h, 18 March Reply

    @ Rajiv – I don't have a rec for you, as I haven't used any of them.

    @ Daniel – DE>NV simply because of future issues and I'm not concerned about IRS information sharing.

    @ Amit – Yes, you need to have a registered agent if you incorporate in Delaware (or any other state you are registered with). I typically use CT Corp or BlumbergExcelsior. There are many others.

    @ Eric – Sounds like a good idea. I'll also include stuff like "Docs we signed as co-founders" and things re incentive compensation in a future revision or just new post.

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  • MorningDew
    Posted at 08:01h, 19 March Reply

    Hi Ryan,

    I would like from Europe register a DE company only for IP holding reason. Can you advice.

    Thanks

  • MorningDew
    Posted at 03:01h, 19 March Reply

    Hi Ryan,

    I would like from Europe register a DE company only for IP holding reason. Can you advice.

    Thanks

  • Carmelo
    Posted at 17:09h, 19 March Reply

    brilliant. Thanks for the synthesis

  • Carmelo
    Posted at 12:09h, 19 March Reply

    brilliant. Thanks for the synthesis

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  • Kyle
    Posted at 16:57h, 21 March Reply

    Ryan, this is awesome. Thanks for posting. Love the links to additional detail, too. Very helpful!

  • Kyle
    Posted at 11:57h, 21 March Reply

    Ryan, this is awesome. Thanks for posting. Love the links to additional detail, too. Very helpful!

  • North
    Posted at 00:23h, 22 March Reply

    Great stuff. Moving up you are.

    You mention vesting, perfect for my co-founders, but what about me?

    Should my own shares vest? No co-founders yet, just me here. I did incorporate Ocean Kinetics, but haven't yet hired a law firm to draw up all the agreements. But this will be done before any other people are brought in… so vesting for mine or what?

    Thanks a billion

  • North
    Posted at 19:23h, 21 March Reply

    Great stuff. Moving up you are.

    You mention vesting, perfect for my co-founders, but what about me?

    Should my own shares vest? No co-founders yet, just me here. I did incorporate Ocean Kinetics, but haven't yet hired a law firm to draw up all the agreements. But this will be done before any other people are brought in… so vesting for mine or what?

    Thanks a billion

  • Chris
    Posted at 01:18h, 22 March Reply

    Would you include preferred shares in charter? What if founders want to have a different class of shares versus the future employees that might get stock-options?

  • Chris
    Posted at 20:18h, 21 March Reply

    Would you include preferred shares in charter? What if founders want to have a different class of shares versus the future employees that might get stock-options?

  • Ryan Roberts
    Posted at 08:39h, 22 March Reply

    @ North – If the stock is for sweat equity, I don't see why not. Will likely be easier to pitch if you are willing to do the same (vesting).

    @ Chris – I wouldn't. If you did want a different class of shares (like Class F or Series FF), you would have to put that in the charter.

  • Ryan Roberts
    Posted at 03:39h, 22 March Reply

    @ North – If the stock is for sweat equity, I don't see why not. Will likely be easier to pitch if you are willing to do the same (vesting).

    @ Chris – I wouldn't. If you did want a different class of shares (like Class F or Series FF), you would have to put that in the charter.

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  • RickM
    Posted at 23:54h, 30 March Reply

    If we are already incorporated in Utah, how do we go about moving it to delaware?

  • RickM
    Posted at 18:54h, 30 March Reply

    If we are already incorporated in Utah, how do we go about moving it to delaware?

  • Ryan Roberts
    Posted at 08:05h, 01 April Reply

    RickM – Probably a reincorporation merger.

  • Ryan Roberts
    Posted at 03:05h, 01 April Reply

    RickM – Probably a reincorporation merger.

  • CC
    Posted at 20:47h, 08 April Reply

    Great post Ryan.

    Question, how much should I budget for C corp incorporation in DE by a reputable law firm? Just basic 2-way equity split, nothing fancy, no option pool etc. I've been quoted $4,000 – $6,000. This seems high.

    Thanks!

  • CC
    Posted at 15:47h, 08 April Reply

    Great post Ryan.

    Question, how much should I budget for C corp incorporation in DE by a reputable law firm? Just basic 2-way equity split, nothing fancy, no option pool etc. I've been quoted $4,000 – $6,000. This seems high.

    Thanks!

  • Ryan Roberts
    Posted at 08:29h, 09 April Reply

    CC – I think most big law firms will charge between $3k-$5k for a Delaware C corp. You can probably get it done for half that at a smaller firm.

  • Ryan Roberts
    Posted at 03:29h, 09 April Reply

    CC – I think most big law firms will charge between $3k-$5k for a Delaware C corp. You can probably get it done for half that at a smaller firm.

  • Igor
    Posted at 19:43h, 16 April Reply

    Hi Ryan,

    Excellent post! I've been reading the whole web about this topic and your post is the most succinct summary. What about incorporating using online services, like delawareinc.com, legalzoom.com and miriads of others. Any advice when to use/avoid them and why?

    Thanks!

  • Igor
    Posted at 14:43h, 16 April Reply

    Hi Ryan,

    Excellent post! I've been reading the whole web about this topic and your post is the most succinct summary. What about incorporating using online services, like delawareinc.com, legalzoom.com and miriads of others. Any advice when to use/avoid them and why?

    Thanks!

  • Ryan Roberts
    Posted at 15:45h, 17 April Reply

    Igor – Legalzoom and the others can be fine if you are a one-founder startup, although keep in mind that their incorporation packages won't include anything like stock purchase agreements reflecting shares that vest.

  • Ryan Roberts
    Posted at 10:45h, 17 April Reply

    Igor – Legalzoom and the others can be fine if you are a one-founder startup, although keep in mind that their incorporation packages won't include anything like stock purchase agreements reflecting shares that vest.

  • Igor
    Posted at 16:14h, 17 April Reply

    Thanks Ryan, another question. Why not Wyoming? Infotaxsquare (http://www.infotaxsquare.com/comparison-delaware-nevada-wyoming.htm) provided a side-by-side comparison and Wyoming wins in every category, yet I never heard anyone recommending this state. What do I miss?

  • Igor
    Posted at 11:14h, 17 April Reply

    Thanks Ryan, another question. Why not Wyoming? Infotaxsquare (http://www.infotaxsquare.com/comparison-delaware-nevada-wyoming.htm) provided a side-by-side comparison and Wyoming wins in every category, yet I never heard anyone recommending this state. What do I miss?

  • Michael Haskins
    Posted at 10:12h, 10 May Reply

    Ryan,

    Love the post. (Love the site actually) Thanks for the information.

    Re: "no one has any clue about Wyoming corporate law." Certainly you're not afraid to be the vanguard and help develop the case law to clear up the questions regarding Wyoming's implementation? The sentence may be hard to read to my tongue in my cheek.

    Seriously though, is your selection of Delaware also dependent upon the nature of the startup? I've always considered instate costs such as manufacturing, real estate, employees and other hard costs can make incorporating within the actual state beneficial if you appeal to the civic incentive packages.

  • Michael Haskins
    Posted at 05:12h, 10 May Reply

    Ryan,

    Love the post. (Love the site actually) Thanks for the information.

    Re: "no one has any clue about Wyoming corporate law." Certainly you're not afraid to be the vanguard and help develop the case law to clear up the questions regarding Wyoming's implementation? The sentence may be hard to read to my tongue in my cheek.

    Seriously though, is your selection of Delaware also dependent upon the nature of the startup? I've always considered instate costs such as manufacturing, real estate, employees and other hard costs can make incorporating within the actual state beneficial if you appeal to the civic incentive packages.

  • Ryan Roberts
    Posted at 13:47h, 10 May Reply

    Igor – The short answer is no one has any clue about Wyoming corporate law.

  • Ryan Roberts
    Posted at 08:47h, 10 May Reply

    Igor – The short answer is no one has any clue about Wyoming corporate law.

  • Alamgir Kahn
    Posted at 19:06h, 14 May Reply

    Ryan — Great post. Thanks!

    One thing that would be very useful and is hard to find info on, is raising "friends and family" $'s. Qualifiers, legalities, paperwork, a discussion of convertible debt, explaining to F&F what happens on failure, next rounds, dilution, etc.

  • Alamgir Kahn
    Posted at 14:06h, 14 May Reply

    Ryan — Great post. Thanks!

    One thing that would be very useful and is hard to find info on, is raising "friends and family" $'s. Qualifiers, legalities, paperwork, a discussion of convertible debt, explaining to F&F what happens on failure, next rounds, dilution, etc.

  • Peter
    Posted at 20:42h, 14 May Reply

    If you're in a state with reasonable corporate laws (California or Massachusetts, for instance), why not a local corporation? It's a lot cheaper. If you're bootstrapping, it makes a difference. S-corp and LLC are also typically better choices for bootstrapped start-ups, I believe. Lower cost.

  • Peter
    Posted at 15:42h, 14 May Reply

    If you're in a state with reasonable corporate laws (California or Massachusetts, for instance), why not a local corporation? It's a lot cheaper. If you're bootstrapping, it makes a difference. S-corp and LLC are also typically better choices for bootstrapped start-ups, I believe. Lower cost.

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    Posted at 11:00h, 20 May Reply

    Thanks Ryan, this is awesome!

  • Yosef Solomon
    Posted at 06:00h, 20 May Reply

    Thanks Ryan, this is awesome!

  • Ryan Roberts
    Posted at 08:21h, 21 May Reply

    @ Michael – Yes, my hypothetical startup is going to be seeking VC funding. Things like civic incentive packages may come into play, but not for me.

    @ Alamgir – I think I've covered most of those sub-topics in various posts on this blog. There really is no difference in the legalities/paperwork, dilution etc between friends & family and complete third-party rounds.

  • Ryan Roberts
    Posted at 03:21h, 21 May Reply

    @ Michael – Yes, my hypothetical startup is going to be seeking VC funding. Things like civic incentive packages may come into play, but not for me.

    @ Alamgir – I think I've covered most of those sub-topics in various posts on this blog. There really is no difference in the legalities/paperwork, dilution etc between friends & family and complete third-party rounds.

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  • Heidi
    Posted at 09:34h, 27 July Reply

    What would you do if you were starting up an LLC web based business? With 3 owners, 1 main.

    (1) Entity Choice: LLC

    (2) State of Incorporation:

    (3) Authorized Shares in Charter:

    (4) Type of Shares:

    (5) Par Value of Common:

    (6) Initial Founders Issuance:

    (7) Founders Equity Split:

    (8) Vest Founders Shares?:

    (9) Vesting Schedule for Founders Shares:

    (10) Consideration for Founders Shares:

    (11) Handling of “Lost Founders”:

    Raising Capital

    (1) Length of NDA:

    (2) Fees Paid to Pitch my Startup:

    (3) Investors:

    (4) Structure of First Capital Raise up to $1MM:

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  • Profwire
    Posted at 22:14h, 02 November Reply

    Great posting and very relevant. I am considering Delaware Corp makes sense. Looking at the following:
    10M shares in charter
    Common Stock Pool 1 Founders Common Stock: 8M
    Common Stock Pool 2 Option Pool Common Stock (Board, Advisors, Employees, Contractors): 2M
    (Par Value Common ).0001
    Preferred Stock Pool (I have heaed this may equal amount of common stock authorized in excess of founders common stock and the option pool common stock, is this true or what’s norm?): assuming structure first capital to raise 1MM via convertible notes?

  • Profwire
    Posted at 22:14h, 02 November Reply

    Great posting and very relevant. I am considering Delaware Corp makes sense. Looking at the following:
    10M shares in charter
    Common Stock Pool 1 Founders Common Stock: 8M
    Common Stock Pool 2 Option Pool Common Stock (Board, Advisors, Employees, Contractors): 2M
    (Par Value Common ).0001
    Preferred Stock Pool (I have heaed this may equal amount of common stock authorized in excess of founders common stock and the option pool common stock, is this true or what’s norm?): assuming structure first capital to raise 1MM via convertible notes?

  • Ryan K
    Posted at 21:14h, 28 December Reply

    Would you typically recommend that DE corps register in their operating state as a foreign corp or should they create a new corp whose stock is entirely owned by the DE corp?

  • jay
    Posted at 08:04h, 16 January Reply

    Ryan,

    Does your recommended Authorized Shares (10,000,000 Shares) and Par Value ($0.0001) apply to non-IT startups as well?

    Thx!

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    Posted at 14:44h, 23 February Reply

    What are the best online resources (blogs, articles, etc.) on startups and entrepreneurship?…

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  • Gretchen
    Posted at 10:04h, 28 March Reply

    Ryan-

    This is great advise and I am thoroughly enjoying reading through your entire site! We’ve launched a web-based LLC in NC and have started appointing common stock to executive staff we hire until we generate revenue of $XXX,XXX. Now we’re going after funding and your advice on “reserved stock option pool” was very useful! Keep the great posts coming!

    GS

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  • Wayne
    Posted at 17:32h, 21 July Reply

    Hi Ryan,

    If I live in California, and incorporate in Delaware, then I have to register a foreign corp. in California and paying Franchise tax in both states though. Please advise if I’m wrong.

    Thanks
    Wayne

    • Taron
      Posted at 15:22h, 05 April Reply

      Hey Wayne,

      What did you end up doing? I am in the same situation now and do not know if I should incorporate in cali or delware.

  • John McCaffrey
    Posted at 10:33h, 26 July Reply

    Great post Ryan!

    I see how everyone says ‘great post’, then asks you a very convoluted ‘hypothetical’ question that you can tell they have their life savings riding on. But I’m not gonna do that. I’m just going to say:

    Thanks for the amazingly informative post!

    I’ll slip my convoluted legal question in some other time ;-)

  • Chien
    Posted at 11:06h, 25 August Reply

    There’s alot of double posting of comments here…Thanks for the list Ryan!

    • Ryan Roberts
      Posted at 11:58h, 30 August Reply

      Sorry about that — I used to have disqus comments until it presented a formatting problem. I should be doing a refresh of the blog in a few weeks/months so hopefully it will be fix then.

  • Raj Mukhi
    Posted at 11:06h, 25 August Reply

    Great post, very valuable info, thx!

    HealthyDeals.com

  • HockeyBias.com
    Posted at 15:09h, 25 August Reply

    GR8!

  • Mike Weiss
    Posted at 17:00h, 25 August Reply

    Really?

    You spend all this time, effort and $$ even before you had done market research to see if the product/service was even viable?

    I hope you mean you’d do these things after. Please tell me not to take this literally. That these are the VERY first things you do.

    Really?

    • Ryan Roberts
      Posted at 11:56h, 30 August Reply

      Not the first thing, of course. But presumably when I was ready to make the startup a ‘business’ rather than a side project/idea.

  • Kevin Wang
    Posted at 23:02h, 25 August Reply

    Great post – thanks.

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    This is awesome. Thanks for sharing.

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  • Michael H Ballard
    Posted at 11:28h, 30 August Reply

    Thanks for sharing.
    Most appreciated.

    Michael

  • Mike
    Posted at 11:42h, 30 August Reply

    Great list and choices. Love the zero page NDA. I think in a lot of cases NDAs put up more roadblocks then they are worth.

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    The only point I would feel needs modification is #9 Vesting schedule. I feel it should be 30-30-20-20 over four years. Why? Because the hardest work is done in the first 18 months of the life of the company. Figuring out the business model, getting the initial traffic/users, etc. Founders should be rewarded for this since many may not be with the company a few years later for various reasons, whether they’re forced out or leave for their own reasons.

    Otherwise great list.

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    Posted at 11:01h, 10 September Reply

    Impressive. We are trying to mimic this with the Argentinian law as a base. As a result I think it’s easier for all of us to move to USA. It’s so nerve-wracking to try to apply a law that was conceived to tax instead to foster growth! Excellent post and wait to hear more from us on your email account ;-)

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