Company Creation

Who Are Stock Certificates Issued To and When?

Q: We are a Delaware C Corp registered as a Foreign Entity in Colorado our home state and we need to figure out the answers to the following questions with regards to stock certificates. 1. Who gets stock certificates issued and when?              My assumptions are that cash investments DO get certificates,…

How Many Shares Should I Use To Incorporate My Company?

Question: How many shares should I use to incorporate my company? Keep it simple.  The more shares you authorize, the more you’ll have to pay in taxes (although these are not large numbers).  They key is having enough shares to have the ability to grant all sorts of equity to different people who help your…

Checklist For Launching A Startup

I ran across a dynamite set of posts for anyone launching a startup. It’s summarized at If I Launched A Startup and includes stuff on incorporation, founders stock, vesting, NDAs, and some other useful things. If you are launching a startup, go check it out.

Choice of Entity – C Corps, S Corps, LLCs?

We’ve written plenty in the past about choice of entities and which ones might make sense for your particular business, but today we found a cool chart that really summarizes nicely. Enjoy. 

Places to Find Developers in Exchange for Sweat Equity

Question: I am in the process of getting my startup venture off the ground and have run into a slight road block.  I have developed the business case, and fleshed out the product requirements, but need a strong developer to the product.  Problem is, I have not gotten any funding yet, therefore cannot pay someone…

How Does One Structure a Business to Pursue Other Business Lines?

Q:  We’ve developed a web-based security product whose primary application was intended for the financial industry. Since inception we’ve since began pursuing two other business lines, also based on the software, that can be considered conceptually different from the product we initially brought to market. We’re debating whether we should pursue these product lines under…

Does My Company Have to Exist to Get Funding?

Q: Does your company have to exist in order to get VC funding? I have an idea for a Web 2.0 company for which I have a business plan and a mockup, but I have not launched it to the public. Do VC firms even consider funding businesses that have not actually gone live? A:…

How Do You Value "Sweat Equity" in a New Restaurant Concept?

Every once in a while we get a question that isn’t in our specific realm of knowledge.  Yesterday we got a question about a new restaurant concept.  While VCs sometimes invest their personal money in restaurants, we don’t do these types of deals out of our funds.  Being the “full service blog” that we are,…

What Is the Standard Number of Shares to Create in a New Company?

Q: This may seem rather fundamental and elementary, but I cannot seem to receive a solid answer from anyone. When filing the articles of incorporation (charter) papers for a C-Corporation, is there a strategic amount of shares to issue at a certain price per share upon incorporating, or is this irrelevant in the beginning? I…