Comments on: Launching A Venture: Ten Tips For Entrepreneurs

By: Scott Edward Walker

Scott Edward Walker — Tue, 13 Apr 2010 08:59:32 +0000

Thanks James. In my experience, it is prudent to get an attorney involved early on to button-down some of the key issues. For example, as I discuss in the post, you should incorporate and issue stock to the founders ASAP for three important reasons: (i) to ensure that the founders can buy their shares at a nominal purchase price; (ii) to address vesting issues between (or among) the founders; and (iii) to start the capital gains period running. Moreover, if you're seeking venture capital funding, you should form a corporation, not an LLC (see my guest post on my friend Neil Patel's site for a discussion of the different entities: http://bit.ly/c4LrRd). Feel free to give me a call at 310-859-7177 if you have any additional questions. Thanks again, Scott

By: james

james — Tue, 13 Apr 2010 08:48:10 +0000

Very resourceful blog Scott...thank you!

I have questions similar to Abiola. Also, when is the right time to hire an attorney to help outline the cap tables, etc? I've been working on a company with a partner and we haven't done much. We're both of the opinion, "Let's see if we have a business first before we dump a $,$$$ into attorney fees." I filed an LLC, but have no clue what to do next to protect what we're both working on under the shell of the LLC.

Thanks again!

By: Scott Edward Walker

Scott Edward Walker — Fri, 12 Mar 2010 23:28:10 +0000

Each situation is different. I am happy to discuss via telephone (310.859.7177). Thanks.

By: Abiola Abiola

Abiola Abiola — Fri, 12 Mar 2010 23:20:46 +0000

This is really helpful thanks…

QQ: Whats the best way to divide stocks when all founders can't put in equal time, resources and effort into a venture?