Bill Reichert
by Bill Reichert at Garage Technology Ventures
Endless articles, books, and blogs have been written on the topic of business plan presentations and pitching to investors. In spite of this wealth of advice, almost every entrepreneur gets it wrong. Why? Because most guides to pitching your company miss the central point: The purpose of your pitch is to sell, not to teach. Your job is to excite, not to educate.
Dan Walter
Below is a link to the Equity Compensation Documents provided by Orrick. These are a good starting point, but we still highly recommend that you speak with your attorney and go over these documents together.
Go see Equity Compensation Docs
Stock Plan
Many companies use employee stock options to compensate, retain, and attract employees. The Stock Plan is the general governing document containing the standard terms and conditions of the options to be granted. This document represents the standard provisions for a Silicon Valley start-up company.
Naomi Kokubo
by Naomi Kokubo, Editor of Founders Space
I found a couple of interesting articles that might help answer this question. One from Wikipedia on S Corporation, and here’s an excerpt:
S-corporations pay a franchise tax of 1.5% of net income in the state of California (minimum $800). This is one factor to be taken into consideration when choosing between a limited liability company and an S-corporation in California. On highly profitable enterprises, the LLC franchise tax fees, which are based on gross revenues (minimum $800), may be lower than the 1.5% net income tax. Conversely, on high gross revenue, low profit-margin businesses, the LLC franchise tax fees may exceed the S corp net income tax.
Naomi Kokubo
by Naomi Kokubo, Editor of Founders Space
It’s probably best to understand the difference between LLC, S Corporation and C Corporation first before we can sort out the tax implications between LLC and Corporation.
There are two legal business entities that relate to this question. One is LLC (limited liability company) and the other is C Corporation (traditional corporation). S Corporation is an election by limited liability companies or traditional corporations to be taxed as such. In other words, both limited liability companies and traditional corporations can choose to be taxed as S Corporation.
Richard Hsu
by Richard Hsu at One Page Blog
My former Venture Law Group colleague and Harvard Law School graduate, Jeff Thomas, has been teaching entrepreneurship courses in various law and business programs. He formed his own company CrazyBrains LLC with the goal of helping entrepreneurs by open sourcing startup corporate forms. Here is his nicely put together one-pager.
Click here for downloadable PDF: Startup Company Forms
Click here to read more from Richard Hsu.
Naomi Kokubo
by Naomi Kokubo, Editor of Founders Space
Okay, this is a great question and very intriguing. I did some research, and here’s what I found:
This site walks you through the basics of Vermont Virtual Companies:
http://vermontvirtual.org/Main_Page
Is a ‘Virtual Company’ Worth the Effort?
http://www.law.com/jsp/lawtechnologynews/PubArticleLTN.jsp?id=1202448133306
Here’s a book the covers Virtual Company Formation:
http://bit.ly/bkt6De
Ethan Stone
by Ethan Stone, Stone Business Law
QUESTION:
I am currently a citizen of India, and I live in in India. However, I’d like to incorporate my new startup in US. How do I go about this?
ANSWER:
First, a quick but important clarification: I’m not your lawyer and this answer doesn’t establish a lawyer-client relationship. I’m giving a generic answer to a generic question to educate the users of this site. The information below is general in nature and should not be understood as a substitute for personal legal advice.
QUESTION:
I’m starting a Web service with two partners. I am Partner A and bring x to the table. Partner B brings y to the table. (The nature of x and y aren’t important for purposes of this question.) Partner C is our tech person and programmer. He’s an invaluable resource — years in the industry, past CTO of a successful internet company, etc. We’re lucky to have him aboard.
QUESTION:
I would like to incorporate a value-added engineering software reseller business. It would be a Pennsylvania based company of about 15-25 employees working out of their home offices (no corporate office). The business involves sales representatives and technical employees delivering on-site training, demonstrations, and technical support. Would it make more sense to set up an LLC or an S-Corp?
ANSWER:
Antone Johnson
QUESTION:
If I am launching a social networking site, do I need to incorporate it in order for the terms of service, terms & conditions, privacy policy and all that stuff to hold up?
ANSWER:
Antone Johnson
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