You only get to incorporate once, and you want to get it right. In this episode, we dive deep into the process of incorporation for startups. We cover everything from choosing the right business entity structure to splitting founder equity. You’ll want to listen to this before filing your incorporation paperwork!
We discuss:
- How the choice of business entity structure depends on the goals and plans of the startup
- Why you should prioritize simplicity and avoid over-engineering the legal structure in the early stages
- Vesting structures, including alternatives to the traditional four-year vesting with a one-year cliff
- How to have open and transparent conversations among co-founders to determine fair equity splits and relative contributions
- Single vs. double trigger, and the importance of acceleration protection in the event of termination or an M&A exit
- What we think is the optimal number of co-founders
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