Forming your company can be a difficult decision. There are a number of different factors to consider when deciding what direction your new company will head. The legal teams at the Startup Legal Garage are well equipped to guide you from the "wet napkin" stage to the next, exciting, stage in your development.
STOCK PURCHASE AGREEMENT
The startup and small business marketplace is still a new and fierce frontier that requires legal advice from attorneys who are deeply entrenched in the particularities of venture financing. The Startup Legal Garage teams can provide holistic approach, so your company can get the best competitive advantage.
TERMS OF SERVICE
Terms of Service are essential when operating a website or mobile application. These terms serve as a binding contract between you and users outlining, and often limiting, your responsibilities to your users. It is imperative to discuss these terms in length with an attorney.
Depending on your business model, your company may be creating copyright or may be infringing on the copyright of others. Copyright is a complex area of law, and it’s important to carefully discuss with an attorney to ensure a) that you are protecting all intellectual property you are creating and b) that you are not incurring liability for infringing on the intellectual property of others.
STOCK PURCHASE AGREEMENT
One of the potential “exit strategies” for startups entails a sale of the majority of the company’s existing equity. This sale is memorialized in a Stock Purchase Agreement, which should be negotiated and drafted with the help of an experienced attorney.
You and your co-founders should enjoy the benefits of your company's success fairly. An equity agreement determines how ownership in the company will be shared. Whether you choose to divide the company equally or according to different founders' roles, it's important to work out the details now to avoid confusion in the future.
Traditionally, investors in emerging companies either bought equity or offered loans through convertible debt. “SAFEs,” or “Simple Agreements for Future Equity,” have emerged as an alternative. These instruments allow a company to obtain capital without determining a valuation and without taking on debt, taking much of the risk off the shoulders of a new company. Experienced attorneys can help you decide whether a SAFE is the best option for you.
Young companies often struggle to accurately identify workers as employees or independent contractors. This analysis is best done with the help of legal counsel. Moreover, the legal teams at the Startup Legal Garage can help you draft solid contracts that best represent the agreement you envision.
Stock option plan
It is typical for young companies lacking in abundant capital to pay employees at least partially with equity. A carefully drafted stock option plan can help you provide additional compensation to your best workers, without creating a mess that may deter future investors.
It’s important to consult with counsel when making important decisions about your company’s equity split and resulting capitalization table. Future investors will often consider whether your cap table follows market standards when deciding if they’re interested in committing capital towards your young company’s future. Discussing these points with an experienced attorney can make all the difference down the line.
Partnering with established companies in closely-related fields can benefit both parties, and some of your company's most important value can come from allowing others to use its ideas for profit. A licensing agreement gives permission to another company to use your company's ideas, and determines what benefits your company will get in return.
asset purchase agreement
An Asset Purchase Agreement memorializes a sale of a company’s assets in an “exit.” The terms of this agreement lay out responsibilities and liabilities going forward. It is critical to consult with an attorney when negotiating and drafting an Asset Purchase Agreement.
As a new company, it’s important to protect your company's public face, set yourself apart, and build recognition with both your name and logo. Teams at the Startup Legal Garage can do trademark searches to ensure that your name and logo are not infringing and can help you register them as new trademarks of your own.