Entrepreneurs like you dream big. Whether you want to enhance the way businesses connect with their clients or increase the efficiency of ordering products online, entrepreneurs set out to change their communities and sometimes even the world with their big ideas. But running out of cash can squash these dreams before you even start – … Continue Reading →
What is a Founders Agreement?
One of the most useful tools for an early-stage startup is the founders agreement (or shareholders agreement). The founders agreement is not the agreement where the company issues stock to the founders; we call that a stock purchase agreement. Rather, it’s part roadmap and part accountability document. Questions to Ask When Creating a Founders Agreement … Continue Reading →
What Legal Issues Should Every Entrepreneur Consider Before Startup Formation?
Depending on the nature of your startup, many potential legal issues could arise – like regulation compliance, leadership structure, non-compete agreements – the list goes on. Here is an overview of the legal issues every entrepreneur should consider before startup formation: Regulatory Concerns Depending on the startup and its industry, there are often specific regulations … Continue Reading →
Do You Really Need a Startup Lawyer?
Why You Really Do Need A Startup Lawyer If you are trying to decide whether you should hire a startup lawyer, you should begin by considering that tech startups are fundamentally different from conventional types of businesses. The legal issues tech startups face, whether it’s choice of entity, issuing stock, or taking on investors, require … Continue Reading →
What is an 83(b) Election and Why Is It Important?
What is an 83(b) Election? One of the most important things startup founders must understand what is an 83(b) election. Failing to make an 83(b) election at all, or filing it late, can have costly tax consequences for the individual founder. Section 83 of the Internal Revenue Code provides that a founder or employee recognizes … Continue Reading →
What Type of Business Entity is Best For My New Business?
When putting together your new venture’s business plan, it’s crucial to decide what type of business entity will be best for your startup. Choosing the wrong type of business entity is one of the most common, and significant, legal mistakes that startups can make. Too often, many unprepared entrepreneurs may rush to launch their new … Continue Reading →
How Should a Founding Team Split Equity When Beginning a Startup?
It is crucial that you properly split equity among all founders when beginning a startup. Many startups often split equity equally among the founding team – which sounds simple, fair, and easy, but can be a mistake. Why Dividing Equity Equally is Usually a Mistake Let’s say founders choose to split equity equally among themselves, … Continue Reading →
What Are Key Ways to Working with Investors?
Five Keys To Working With Investors Cincinnati Startup Lawyer If you are a startup founder and you are looking for outside investment, here are five keys to working with angel investors and venture capital funds. Investigate Your Investors Potential investors are going to put a lot of money into your company, and they will investigate … Continue Reading →
Why Startup Financing is Not a DIY Project
Startup Financing Cincinnati Business Law Attorney: Paul Spitz There are projects that are easy enough for a smart startup founder to take on, and then there are projects that are simply too complex, and which require the help of an experienced lawyer. Startup financing, such as a seed round or convertible note financing, are definitely … Continue Reading →
Why Use an Attorney Instead of Legalzoom or Clerky?
Using A Business Attorney Instead of DIY Legal Products “Why should I use you to set up my business, instead of Legalzoom or Clerky? You cost more money.” I get that question occasionally from clients, and I usually answer by explaining that all those sites do is provide documents, which may or may not suit … Continue Reading →
Can A Letter of Intent Be Binding?
Cincinnati Business Contract Negotiation Lawyer Can A Letter of Intent Be Binding? The answer is, sometimes, a letter of intent can be binding. When companies are exploring a potential deal – whether it is an investment, a merger, or the sale of real estate or some other asset – they often put together a “letter … Continue Reading →
Why It’s Important to Choose Your Investors Wisely
Experienced Lawyer On Your Side Be Careful When Choosing Investors An episode of Shark Tank demonstrates why startup founders have to be careful when choosing investors i their company. I don’t watch the show, but I tuned in to this episode because it featured a local startup called Frameri (which has since then gone out … Continue Reading →
Is Your Startup Ecosystem Sick? How To Tell
Startup Attorney Paul Spitz Serving Ohio & California Areas I had an interesting lunch with some fellow lawyers the other day. I know, “interesting” and “lawyers” shouldn’t be used together in a sentence, but bear with me. We were discussing venture capital deal terms we had encountered with various startup financings we had worked on. … Continue Reading →