Voting Rights of Vesting Shares

One of the most asked questions I receive when setting up new startup companies is “Do my vesting shares have any voting rights?”  Or in other words,  does a stockholder only get to vote based on their amount of vested shares?  Since most of the times a founder subjects their entire

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Dual Class Common Stock Structure for Founders

A startup founder’s desire to hold equity better than plain-vanilla common stock isn’t new.  Several years ago, Series FF stock for founders was all the rage when it came to founder liquidity at subsequent financing rounds. We implemented Series FF for a handful of clients back then but we haven’t done so recently. In the

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If I Launched a Startup in 2014

I thought I would expand upon and update my “If I Launched a Startup” post from 2010 to include recent issues such as incubators and crowdfunding. So in 2014, here’s what I’d do in the beginning: Incorporation (1) When: As soon as I was serious about making my startup a

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Delaware Franchise Taxes

If you haven’t already received your Delaware franchise tax statement in the mail, then it’s probably on the way. You have to give credit to Delaware — they make paying your corporation’s franchise taxes “thrilling.” For example, if you authorized 10,000,000 shares of common stock in your certificate of incorporation,

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Filing a Charter Is Not a Startup Incorporation

I’ve noticed a lot of recent articles promoting that a startup can “skip the lawyer” and incorporate via an online service. These sites typically list about 20 incorporation tasks they’ll do for your startup for around $250 plus the applicable state filing fees. Sounds like a great deal, but there

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The When to Incorporate Decision-Matrix

In a recent post, I detailed some incorporation-related points of interest if I launched my own startup. The post presumed I made the decision to push forward with the incorporation of my startup. But how do you know when the time is right to incorporate your startup? Advice Varies There’s

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