Re:Ask HN: Incorporating a business and initial legal work: ...
by andale on Monday June 09, 2014 @05:11PM
(#7870537)
Again, thanks for the insights.
"Don't waste too much money on company formation, though. Try to keep the transaction with the lawyer focused solely on vesting. There are lots of other things you can do suboptimally during company formation, but they aren't going to matter so much that you should spend extra money today to deal with them."
Could you expand a bit on this? When you say "Try to keep the transaction with the lawyer focused solely on vesting" do you mean basically making sure that all stipulations around vesting are ironclad and super straightforward?
Re:Ask HN: Incorporating a business and initial legal work: ...
by tptacek on Monday June 09, 2014 @06:22PM
(#7870839)
Yes; don't, on the other hand, waste lots of time on multiple classes of stock, or on discussing the benefit of S versus LLC or C versus S; you can end up paying thousands of dollars for what should cost you a couple hundred tops.
Do talk to a lawyer before incorporating with multiple cofounders, because you need vesting. Do not mess that up. It is a big deal.
Don't waste too much money on company formation, though. Try to keep the transaction with the lawyer focused solely on vesting. There are lots of other things you can do suboptimally during company formation, but they aren't going to matter so much that you should spend extra money today to deal with them.
Do talk to a lawyer before signing your first employment agreement, but don't do it until you actually need to do that.