QUESTION:
I want to start a network of websites all with similar names and themes to sell certain merchandise. Should I have one C-corp with all of the websites registered under it and individually trademark the sites? Or should I register each website as a different entity, even though it will be far more tedious? As far as exits go, how will I be affected if I want to sell one of the sites, but not all?
ANSWER:
QUESTION:
I will be incorporating my company in Los Angeles, CA and was interested in knowing if I would need a licensed attorney to represent my company before I submit.
ANSWER:
Naomi Kokubo
by Naomi Kokubo, Cofounder of Founders Space
Legally, you don’t need an attorney to incorporate, but unless you’ve done it many times before, it’s a good idea. You may want to have an attorney look over your documentation and make sure you are choosing the right entity for your business.
QUESTION:
It is my understanding that the standard vesting period for the senior-level people is 4 years. During that 4 year vesting period, is it normal to do a 100% vest after the fourth year or are some investors ok with cliff vesting?
ANSWER:
Naomi Kokubo
by Naomi Kokubo, Cofounder of Founders Space
Here is a typical four-year stock option vesting schedule for employees:
QUESTION:
How do I obtain a business license for my startup?
ANSWER:
Francine Miltenberger
by Francine Miltenberger, Managing Director and Partner in Onyx Asssociates
QUESTION:
I’m looking for founders’ stock purchase agreements to use for my startup. Do you know where I can find any documents like these?
ANSWER:
Naomi Kokubo
by Naomi Kokubo, Cofounder of Founders Space
Below is a link to the Founders’ Stock Purchase Documents provided by Orrick. You need to check with your counsel to make sure these work with your company.
Go see Founder’s Stock Purchase Docs
Common Stock Purchase Agreement (with Vesting)
QUESTION:
Does my startup have to be incorporated in order to go out and begin raising funds? I’m a solo operation, and I’m looking for angel funding, but I haven’t incorporated yet. I figured I’d see what the potential is before taking this step. Is this fairly typical?
ANSWER:
Ethan Stone
by Ethan Stone, Stone Business Law
QUESTION:
Are there any differences between an LLC and S Corporation in term of liability? Which entity protects the owner more? Does a corporation provide more liability protection than an LLC?
ANSWER:
I found this site — I believe it does a good job of explaining things. Here is an excerpt of what Stephen Nelson says on the site:
Does an S Corporation provide better limited liability protection than an LLC?
QUESTION:
One of our founders asked, “I heard that an LLC can be treated as an S Corporation, but what does that mean? I’m confused. How can that be possible?”
ANSWER:
I found this article that answers your question really well. It’s from S Corporations Explained site, and here’s the excerpt:
What, exactly, is an S corporation?
Business people (and sadly even some accountants and lawyers who should know better) get confused about exactly what an S corporation is. So this is a good question.
QUESTION:
I’m changing from a partnership to an LLC, do I need to get a new tax ID? If so, I’d need to get new bank accounts and everything. It’s a big hassle.
ANSWER:
I found an interesting article that says, “converting a general partnership in California to a California LLC is as simple as filing a form and paying a fee.” The rules may vary in other states.
Click here to read the article.
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