BryanCave.com
Launch

Congratulations! You have a great idea and have decided to start a business. Before you take any further steps, you should first draft a business plan. Next, you should form an entity under which to conduct business. One of the first decisions you’ll need to make is where to start your start-up. In all likelihood, you will choose between a limited liability company (“LLC”) and a corporation, both of which protect you from personal liability and each of which carry specific advantages and disadvantages. Based on the entity you select, there are certain key legal documents you will need:

If you are a corporation, you’ll need articles of incorporation and bylaws, and you’ll likely want a shareholders agreement, a capitalization table, a founders invention assignment agreement, an employee proprietary information and invention assignment agreement, and perhaps a standard form contract. Click here for more information on these key agreements for corporations.

If you are an LLC, you’ll need articles of organization and an operating agreement, and you’ll likely want a shareholders agreement, a capitalization table, a founders invention assignment agreement, an employee proprietary information and invention assignment agreement, and perhaps a standard form contract. Click here for more information on these key agreements for LLCs.

We believe that defining the economic and business relationship among founders is critical. Early on, you should negotiate and sign a buy-sell/shareholders agreement or operating agreement.

Recent Blog Posts
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    In our prior post, we identified 8 common means used to protect minority investors’ stakes in start-ups. In addition to considering those, minority investors should be aware of their ability to exit their investments. Typically, investments in privately held companies are illiquid. This can be either positive or negative to […]

  • What Start-Ups should know about Minority Investor Rights

    Business investors, like venture capital funds, angels and other investors, typically receive minority ownership interests. The resulting lack of voting control and limited influence on management control requires these investors to use other means to protect their interests and have a voice in key business decisions. Minority investors should consider […]

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    The United States has relatively few restrictions on collecting information from children off-line. Efforts to collect information from children over the internet, however, are regulated by the Children’s Online Privacy Protection Act (“COPPA”). Among other things, COPPA requires that a website obtain parental consent prior to collecting information, post a […]

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