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TL;DR: Equity distribution is a crucial decision for startup founders, impacting ownership, team incentives and investor funding. Founders should strategically allocate equity among co-founders, employees and investors while planning for dilution and maintaining control. Key considerations include structuring fair founder splits, creating a stock incentive pool (typically 10-20% of equity), implementing vesting schedules to protect…

TL;DR: Startup founders and investors can potentially exclude up to 100% of capital gains from federal taxes on the sale of Qualified Small Business Stock (QSBS), resulting in tax savings of up to $10 million (or more in some cases). To qualify, the stock must be originally issued by a C-corporation, held for at least…

TL;DR: Managing legal expenses is critical for startups to avoid costly mistakes and set the foundation for growth. Engage the right startup-focused lawyer early to align legal strategy with your goals and prioritize legal needs based on your startup’s growth stage. Use fixed-fee services for predictability, maintain organized legal documents, and build a strong, trust-based…

TL;DR: Biotech startups are revolutionizing fields like medicine, life science and environmental science, but they face significant legal hurdles when seeking funding. Key legal considerations for funding biotech startups include choosing the proper corporate structure, distributing and documenting founder equity, building a solid team and IP portfolio, developing a strategic funding approach and preparing for…

Raising startup seed funding often is a challenging process for startup founders. Many startup founders, especially the “do-it-yourselfers,” will make mistakes that adversely affect their chances of securing funding or negatively impact their startup’s future. When planning how to get funding for your startup, knowing what not to do can be as important as knowing…