Compensation for founders and executives in startups
Posted on 20. Nov, 2008 by admin in Formation
Every founding team wants to know if their equity split is fair. Additionally, outside executives are often brought into early stage companies as “hired guns” and desire to be fairly compensated. After spending quite a bit of time researching the best sources of information on early stage company compensation, we’ve linked to a [...]
The importance of a startup’s name
Posted on 30. Sep, 2008 by squareroots in Formation
In February 2008 I started acquiring domain names based around the idea of this web-site. Although some were not “sexy”, most were at least tolerable. Originally, learningvc.com was to be the domain for this web-site. Luckily I learned about backordering domains, which is how I came upon learnvc.com in April 2008.
In May [...]
Tax implications
Posted on 09. Jul, 2008 by squareroots in Formation
LLC (Limited Liability Company)
An LLC is the more flexible of the two types of entity discussed in this article (LLC and S-Corp). In essence, you can have any tax treatment you want. A couple of examples:
All tax write-offs (during periods of losses) to someone who hasn’t contributed capital, or to someone who has only provided [...]
Picking a law firm
Posted on 09. Jul, 2008 by squareroots in Formation
An important aspect of finding a good law firm is to verify that they are “plugged-into” the investment community where you want to raise money. This means that they have a track record forming companies that take investor money, preferably Venture Capital as this is the most sophisticated type of early-stage investor.
The implications for using [...]