At Putnam Gordon, P.C., we like to work with entrepreneurs at all stages of the startup lifecycle. Improperly handling equity early on is one easy way to kill a startup.
Founders’ Agreements and Stock for Startups: If you have more than one founder, you need to be very careful and memorialize the agreement among founders to avoid legal problems later. You also want to make sure that you have vesting in place so that if a founder leaves he or she doesn’t have a disproportionate interest in the business.
This video is a presentation about founders’ equity on December 14, 2015. San Francisco-based startup attorney Jason Putnam Gordon of Putnam Gordon, P.C. discussed issues on properly distributing equity to compensate/reward founders, investors, and other contributors to help build a successful startup. The discussion included the basics of valuation and ownership, as well as best practices for founders, employees and consultants, early and then later investors.
(Please note: the video contains General Information –Not Legal Advice.)
Equity compensation is only one component of how employees and consultants expect to be compensated. Legally getting equity compensation in place requires strategic planning, the right agreements, and the right corporate approvals.
At Putnam Gordon, P.C. we love working with startups, and are available to speak with you as you grow your idea into a successful business and beyond. (Please note: any communication with Putnam Gordon, P.C. is not confidential unless and until there is a signed written engagement agreement.)