Entrepreneurs! Avoid the most common legal mistakes startups make early on and you’ll be better positioned in the future for investment or exit. As a new business venture, the decisions you make when forming and organizing your company and operating on a limited budget can have consequences that are difficult or expensive to remedy when you have an investment deal on the line.
At StartupSac Office Hours in November, we welcomed Stoel Rives attorney Chris Russell to discuss the top legal mistakes that early stage companies make when starting their businesses. The presentation included discussion on common mistakes such as:
- Failing to incorporate early and select the proper entity
- Failing to identify and protect intellectual property
- Failing to have formal, written founder agreements
- Issuing too much equity to co-founders and service providers
- Issuing equity without vesting
- Not complying with federal and state securities laws
- Promising more to investors than can be delivered
- Not complying with employment laws, including CA AB5
Whether you are still at the cocktail napkin stage or ready to incorporate, this presentation will provide valuable information that will positively impact the success of your startup.
Check it out in the recoding of the session below.
