How to Split Up Equity Among Co-Founders (and Why You Should Care)

You started a company with a couple of your good friends. Some have put in more money or time than others, but you feel like you can trust each…


Should SAFEs replace Convertible Notes?

You may have heard about the investment instrument Simple Agreement for Future Equity, otherwise known as a SAFE. SAFEs are just one of the many…


Buy-Sell Agreements: Why Every Business Needs One

A buy-sell agreement is a necessity for any co-owned startup business. Most entrepreneurs don’t spend a lot of time thinking about their eventual…


Re-allocating Equity in Your Startup

Founders often have to revisit their equity division once they begin operating their company and see the actual value that each is providing. We have…


LLC Formation: Why Filing Your Articles is Not Enough

While merely filing Articles of Organization might be sufficient to establish an LLC, several important documents are required to properly organize…


Startup Legal Lessons from the Biography of Steve Jobs (Part 5)

Walter Isaacson's bestselling biography of Steve Jobs touches upon numerous legal issues common to startups. This is part 5 of our series on startup…


Startup Legal Lessons from the Biography of Steve Jobs (Part 2)

Walter Isaacson's bestselling biography of Steve Jobs touches upon numerous legal issues common to startups. With the movie "Jobs" opening in…


A Primer on Vesting

A "vesting schedule" does not refer to the days of the week when you must wear this. Fred Wilson recently wrote about the natural turnover on startup…


To 83(b) or Not to 83(b) (Part 2 of 2)

The tax implications of failing to file an 83(b) election when receiving restricted equity can sting.   Let's further examine the impact of…


To 83(b) or Not to 83(b) (Part 1 of 2)

Failing to file an 83(b) election can be as painful as being stung by 83 bees. Equity Compensation Founders and early employees of a company often…