MGLS INSIGHTS

Before you and your best friends start a company together, it is wise to spend some time discussing certain key items that will govern business matters between you and to then put you’ve agreed on in a legally enforceable agreement -- what we would call a “Founders Agreement.” By working out these important points in advance, you and your teammates can bring clarity and shared vision to your new enterprise and avoid disputes and potential lawsuits down the road.

Given the various complicated issues with stock options (and we’ve only scratched the surface here), why don’t companies just give actual shares that are subject to some sort of vesting schedule instead of stock options?

Giving early-stage hires equity compensation is often the best solution for new businesses that are low on cash, compared to established businesses, and want to incentivize key team members.

And for these early-stage team members, equity compensation is often the holy grail. Over the decades, tech giant equity compensation has created thousands of millionaires. Let’s take a closer look at stock options.

Dilution is a very, very common process with startups; since startups usually do one financing round after another, an early shareholder may end up getting diluted multiple times.

As a founder, you might ask yourself, should I work with an advisor?

Will it help your startup?

One big surprise for startup companies is when some potential new client tells them that, as part of the deal, the startup has to have all sorts of insurance in place. It isn't an uncommon scenario.

n this article, we look into how to register a trademark with the United States Patent and Trademark Office (USPTO). Thankfully, this is a fairly easy and inexpensive process to follow.