In this episode, we continue our discussion on forming a company and some of the key considerations involved in that process. We specifically talk about the early stages and the lifecycle of a company as well as what founders need to think about when they are setting up their businesses.
Today’s conversation is focused on the Silicon Valley model of corporations, founder equity grants, the hiring of employees, and grants to employees. If you have an LLC, it’s going to look very different, which calls for a separate discussion.
In this episode, you will hear:
- How does founder’s equity work?
- Who has what percentage of the ownership?
- What is vesting?
- What is the 83(b) election?
- Two types of acceleration
- Can you hire employees and pay them in stock?
- What is the difference between a stock and an option?
- Things to consider when getting advisors
- Why are employees given equity out of a pool versus a stock?
- Ways to protect your IP
- What corporate documents you need to organize
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Supporting Resources:
Episode 003: Starting a Company? The Incorporation Process and Early Considerations
https://cgl-llp.com/podcasts/cgl003
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