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83(b) Elections for Startup Founders – PNW Startup Law
http://pnwstartuplawyer.com/83b-elections-for-startup-founders
83(b) Elections for Startup Founders. Jul 23, 2015. If you just received STOCK from a startup, and that stock is subject to VESTING, then file an 83(b) election within 30 days. You must mail the 83(b) election to the IRS within 30 days after you receive the stock. Unless you ‘early exercise’). You pay tax on the paper value. Of your stock as it vests. That’s basically the area under the curve in the figure above. Your stock vesting schedule. 4 years with a 1 year cliff. The 83(b) Election Form. If you li...
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Founder Agreements – PNW Startup Law
http://pnwstartuplawyer.com/founder-agreements-shares-and-83b-elections
Nov 16, 2014. Our technology law Link List. Series collects useful startup guidance from around the internet. This post discusses cofounder agreements, initial equity splits, issuing shares, and making an 83(b) tax election. Cofounder Agreements and Initial Equity Splits. Issuing Shares and 83(b) Election. This is advice worth reading, but it may not be advice that’s right for your startup. Cofounder Agreements and Initial Equity Splits. Allocating Equity and Founder’s Investment. How to Divide an Imagin...
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Should I Incorporate in Washington or Delaware? – PNW Startup Law
http://pnwstartuplawyer.com/incorporate-startup-in-washington-or-delaware
Should I Incorporate in Washington or Delaware? Oct 17, 2016. You can incorporate your startup in Washington or Delaware. Either is fine. Washington is cheaper. Some out-of-state investors may prefer that you incorporate in Delaware. If you change your mind, you can always convert from a WA entity to a DE entity or vice versa. Standard startup docs default to Delaware. Clerky. The Series Seed docs. Are all set up for DE corporations. Of course, these form documents can be modified for other states. Where...
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Hiring Employees – PNW Startup Law
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Pay and Equity Incentives. CA and WA State Laws on Employee Inventions. Employees vs. Independent Contractors. VC Fred Wilson offers advice for building a methodical hiring roadmap and operating budget. MBA Mondays: Best Hiring Practices. 2012 Consider using JobVite. To track your applicants. But don’t just wait for applicants. You need to proactively search for strong talent. Hiring decisions are critical, so don’t be afraid to spend time on them. How to Hire. Hiring Employee # 1. 2011 Hire startup-mind...
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Convertible Debt vs. Equity – PNW Startup Law
http://pnwstartuplawyer.com/convertible-debt-vs-equity
Convertible Debt vs. Equity. Nov 24, 2014. This Link List discusses the relative benefits of using convertible notes versus equity financing when raising money for early stage technology startups. Our technology law Link List. Series collects useful startup guidance from around the internet. As always, this is advice worth reading, but it may not be advice that’s right for your startup. Discounts and Valuation Caps. A Example with Widgets Instead of Startups. Some Y Combinator Controversy. Is like saying...
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Forming a New Company – PNW Startup Law
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Forming a New Company. Founders grapple with lots of difficult choices. This isn’t one of them. If you’re going to scale a venture-backed startup, incorporate as a Washington or Delaware Corporation. Be a C-corp, not an S-corp. Don’t form an LLC. Form a Delaware or Washington C Corp. Corporation vs. LLC. S-Corp vs. C-Corp. Social Purpose Corporation / Benefit Corporations. Summary of Entity Choice Issues. Form a Delaware or Washington C Corp. Forming your company in Washington will reduce your. A Washing...
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Exits, Acquisitions and IPOs – PNW Startup Law
http://pnwstartuplawyer.com/exits-acquisition-ipo
Exits, Acquisitions and IPOs. Feb 9, 2015. This is our curated collection of posts about exits and IPOs for technology startups. Check out our Link List. Series for other startup topics. M&A: Talking to Corp Dev. Three Types of Acquisitions. 2011 Talent, Tech, and Business. Know the difference. Notes on the Acquisition Process. 2012 High-level bullet points from the renowned founder and VC. The Founder’s Guide To Selling Your Company. How to Sell Your Company. M&A Case Studies: WhatCounts Sale Process.
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Financing and Raising Capital – PNW Startup Law
http://pnwstartuplawyer.com/financing
Financing and Raising Capital. Bootstrap: Build a Company without Raising Money. Angel Investors / Seed Funds. SAFES and Convertible Equity. How Much to Raise and at What Valuation? Valuation vs. Deal Terms. Standardized Seed Financing Docs. Bootstrap: Build a Company without Raising Money. How far you can bootstap the company before raising outside money? The more revenue and traction you show investors, the sweeter your first term sheet. Some startups may not need to raise outside money at all. In para...
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Startup Employee Equity Compensation – PNW Startup Law
http://pnwstartuplawyer.com/startup-employee-equity-compensation
Startup Employee Equity Compensation. Mar 5, 2015. Here's a collection of my notes and links on options, vesting, and equity incentives for startups. Number of Shares Outstanding (Fully Diluted). Stock Options - Startup’s Perspective. Stock Options - Employee’s Perspective. Can the Startup Repurchase Vested Stock? Acquisitions: Assumption of Option Plan. The 83(b) Tax Election. Other New Ideas in Employee Compensation. Of each. A stock option. Number of Shares Outstanding (Fully Diluted). Likewise, emplo...
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Startup Lawyers – PNW Startup Law
http://pnwstartuplawyer.com/startup-lawyers
To build and scale a startup, you’ll need a lawyer who. In startup law and. Venture capital. Good lawyers are expensive, but hiring a top-tier startup lawyer will. You money in the long run. Hiring an inexperienced startup lawyer to manage your legal needs is like hiring an inexperienced dev to as your CTO. You’re incurring unnecessary technical debt. You will be making early decisions that are expensive to refactor. The Right Size Law Firm for Startups. Be Wary of Hiring Your. Look for an AngelList.