legal basics for startups

LEGAL BASICS FOR STARTUPSWHEN TO GET YOUR

LAWYER INVOLVED

P2Bi Small Business Webinar Series

Presented by P2Binvestor | P2Bi.com

© 2014, P2Binvestor Inc. All Rights Reserved.


PRESENTED BY

Krista MorganCo-Founder & COO P2Binvestor

SPECIAL GUEST

Bryn WeaverWeaver Law LLC

LEGAL BASICS FOR STARTUPS WEBINAR JUNE 2014




• All about ideas

• Choosing co-founders

• MVP development

• Writing business plan

Pre-formation

• Formalizing founder relationships

• Early-stage financing

• Creating infrastructure

• Patents / IP

Company

Formation • Hiring and incentivizing employees

• Raising (more) capital

• Defining roles and responsibilities

Operations

EARLY STARTUP PHASES OF DEVELOPMENT

Form the company and enter founder agreements when you’d be sad if you had to walk away or when you need to enter contracts.



THE IMPORTANCE OF FOUNDER AGREEMENTS

• Put founder agreements in early

• Vesting founder equity is critical

• 50/50 is often not the right approach

• Ask yourself where the sacrifice is coming from

• Founders need to be “all-in” – the company needs to

own the business ideas and IP



CHOOSING THE TYPE OF COMPANY

There are pros and cons to the different legal

structures available to businesses

The questions to ask yourself are:

• How are you planning to finance your business?

• How much and what type of investment is

coming in the next 6-12 months?

• How are you planning to incentivize employees?

• How many people are you planning to hire

in the next 6 months?

• What level of person?



ENGAGING WITH EARLY SERVICE PROVIDERS

Early stage businesses often hire contractors to

help bring their idea to life.

• Should you give equity in exchange for work?

(aka equity isn’t candy)

• Contractor, or employee?

• How do you protect your IP?

• Is everyone a co-founder?



ENGAGING WITH ADVISORS

Feedback is critical to a new business:

• Finding the right advisor

• Should you give equity in exchange

for advice? (aka equity isn’t candy)

• NDA or no NDA

• Set realistic expectations



HOW TO ENGAGE A LAWYER EARLY ON

• Choose a lawyer you trust

• Choose a lawyer that does what

you need right now

• Ask for references

• Set clearly defined budgets

© 2014 P2Binvestor Inc. All Rights Reserved.


THANK YOU!WE WILL NOW TAKE QUESTIONS

How to ask your question:

Enter your question into the chat box on the

left or click “My Mood” and then “Raise

Hand” button to verbally ask a question.

Still have questions? Contact us at

[email protected] after the webinar.

Interested in our business funding model or

referral program? Learn more at P2Bi.com or

contact us at [email protected].

legal basics for startups

Small Business & Entrepreneurship