Money talks. Everybody needs it. Despite its importance, however, many startups regularly make compensation mistakes that could have legal implications that are both difficult and, almost ironically, expensive to resolve. Misclassifying Workers Can Hurt Your Startup Uber, one of the best known and most successful startups of the last 10 years, recently reached a settlement […]
If you are starting a new company, you likely have questions about choosing an entity, management structure, and many other legal issues that will impact and shape your new company. One of the most common questions when starting a California limited liability company is whether a startup should be member-managed LLC or a manager-managed LLC. […]
Every entrepreneur wants his or her startup company to be successful. Founders measure success in different ways, but one way to measure success is to compare their market share to other comparable businesses in the industry. When a startup company raises a tremendous amount of capital and their valuation soars to a $1 billion valuation […]
One of the most exciting aspects of business life in Silicon Valley is the creative and innovative culture of startup businesses. For many new entrepreneurs, a startup business is a moonlight project that occurs while he or she is still an employee of another company. Moonlighting presents both advantages, as well as legal complications which […]
California, the premier hub for tech startups, is an exciting place for young entrepreneurs. When an entrepreneur starts a company there are important, practical questions to consider; for example, how do I pay myself when starting my company? There is no magic formula when deciding how to pay yourself when starting a company. Compensation depends […]
An employment contract is a legally binding agreement between two parties, generally between an employer and employee, and is designed to protect both parties. For employees, having an employment contract gives them security by clearly outlining his or her duties and obligations of employment. It also helps protect the employers’ clientele and intellectual property. Because […]
If you are starting a business in California, you are likely eager to gain the legal protections of a corporation or limited liability company (LLC). Before you can obtain these protections, there are a few decisions that must be made. A trained corporate attorney will help startups make some of these decisions, and ultimately, this […]
Previously, we discussed four challenges a startup company may face: funding, creative destruction, innovation, and hiring, and the importance of understanding future obstacles with each. Unfortunately, many startups fail because they are not prepared to face these challenges. With the help of a qualified California startup lawyer, startups can overcome these early challenges, as well […]
Deciding to form a startup company can be a very exciting time. You work hard to come up with a novel idea and devise a strategy for developing the underlying product. The next step would be to obtain financing to put your business goals into practice. If there is not enough to bootstrap and fund […]
Stock option plans for employees are an effective strategy to maintain employee satisfaction and retention while preserving a startup’s precious cash funds. Employers can issue restricted stock to employees as well as permit employees to purchase stock under a stock purchase plan. Stock option plans (employee stock options, if the startup is a corporation; or profit […]