Business Formation & Corporate Governance

A collection of 192 posts

Startup Central

Cap Table Fundamentals: What Every Founder Must Track

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Audience: founders, small‑business owners raising capital, and in‑house or part‑time counsel. In one line: a cap table is the single source of truth for who owns what (and on what terms), and it directly determines control,

Startup Central

Who This Guide Is For and Why Cap Tables Deserve Your Attention

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Who This Guide Is For and Why Cap Tables Deserve Your Attention A cap table (short for capitalization table) is a living record of who owns what in your company, on what terms, and how that ownership changes over

Startup Central

Integrating Legal Review into Carta: A Practical Guide to Accurate, Dispute‑Proof Startup Equity

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Many startups think that once they “move everything into Carta,” equity management is solved. In reality, Carta reflects the inputs you give it; it doesn’t create approvals, fix inconsistent paperwork, or interpret contract language. For background on what

Startup Central

Founder Agreement Template: Equity Splits, Vesting, and IP Assignment Explained

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Why Every Startup Needs a Real Founder Agreement (Not Just a Handshake) Most startups begin on trust and speed. The problem is that the disputes that actually kill companies usually come later — when co-founders realize they were working from

Business Formation & Corporate Governance

Start With the Basics: What Authorized Shares Actually Do (and Don’t Do)

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... When incorporating, founders must set authorized shares very early — often before fundraising, hiring, or a clear cap table exists. A low or awkward count can force charter amendments, delay financings, raise franchise-tax exposure, or leave a messy cap table

Startup Central

Why Clean, Digital Cap Table Management Matters More Than You Think

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Cap table platforms like Carta have become the default way startups and growth-stage companies track ownership, option pools, and convertibles — because investors now expect a clean, digital “single source of truth.” The risk is assuming the software will keep

Startup Central

The Cap Table as Legal Document: Beyond the Spreadsheet

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Cap tables quietly determine who owns control, how value flows, and who benefits when a startup grows or exits. Treated as “just a spreadsheet,” they often hide mis‑recorded grants, mismatched totals against the charter, and uncleared SAFEs or

Business Formation & Corporate Governance

When a Cooperative Might Be the Best Legal Structure for Your Business

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Why Cooperatives Are Having a Moment When most founders think about business structures, they reach for the familiar: LLC for flexibility, C-corp for venture capital, S-corp for tax efficiency. But there's another option that rarely makes the

Business Formation & Corporate Governance

Nonprofit or Public Benefit Corporation? How to Choose the Right Structure for Your Mission-Driven Venture

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... You want to build something that matters. A venture that generates revenue while advancing a cause you care deeply about — whether that's environmental sustainability, educational access, or community development. The question isn't whether to embed

Business Formation & Corporate Governance

Cap Table Management: A Startup Founder's Complete Guide

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Equity is a startup’s core currency, and the cap table is the single source of truth for who owns what and on what terms. Messy or inaccurate cap tables quietly cause broken financings, founder disputes, loss of key

Startup Central

Startup Cap Table Legal Review: Accuracy, Compliance, and Disputes

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Most startups manage their cap table like a spreadsheet exercise. Investors and acquirers don’t — they treat it like a legal document that must reconcile to signed agreements and approvals. When it doesn’t, small data-entry issues (or “we’

Business Formation & Corporate Governance

Benefits of Series LLCs: When This Structure Actually Helps Your Business

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... When you operate multiple projects, properties, brands, or product lines, the biggest hidden risk is cross-contamination: a lawsuit, debt, or contract problem in one venture can spill into everything else. A Series LLC is designed to reduce that risk

Startup Central

Broad-Based Weighted Average Anti-Dilution: A Founder's Guide

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Dilution is part of startup life: every new financing usually means issuing more equity, which reduces everyone’s percentage ownership. But down rounds — raising money at a lower price than the last round — create real tension because investors want

Business Formation & Corporate Governance

Setting Up a Nonprofit for Success: A Practical Legal Guide for Founders

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Why Getting Nonprofit Formation Right Matters Starting a nonprofit is an act of optimism. You believe you can make a difference. But that optimism needs a solid legal foundation. A poorly formed nonprofit can lose its tax-exempt status, expose

Startup Central

Carta Cap Tables: How Founders Avoid Legal and Diligence Problems

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... A capitalization table (or “cap table”) is the living record of who owns what in your company — founder stock, option pools, SAFEs/notes, preferred rounds, and any unusual rights that affect economics or control. When the cap table is

Startup Central

Why Cap Table Accuracy Becomes a Crisis Only When It's Too Late

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... A cap table is the simple, authoritative record of who owns what — shares, options, warrants, SAFEs/notes and how those instruments convert. It sits at the center of ownership, control and value in every startup. Too often founders treat

Business Formation & Corporate Governance

Cap Tables as Founder Leverage: Ownership, Control, and Liability

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Why cap tables are a founder’s hidden leverage (and liability) A cap table (short for capitalization table) is a simple ledger showing who owns what — share classes, options, SAFEs/notes — and therefore where ownership, voting control, and economic

Startup Central

When and How to Build an Effective Startup Advisory Board

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... In the first 6–18 months of a startup, the biggest constraint usually isn’t ambition — it’s time, context, and access. A well-run advisory board is a lightweight way to borrow experience and networks without expanding your formal

Fundraising & Financial Regulation

Why “Simple” Angel Deals Break Later—and How Legal Counsel Prevents It

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Angel investing is early-stage capital from individuals (or angel groups) that typically shows up in pre-seed and seed financings — and it can also look like a “strategic” startup investment by an established business. Because these rounds are often relationship-driven,

Startup Central

How to Manage a Startup Cap Table (and When Legal Counsel Is Essential)

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... A cap table is the startup’s financial operating system — it maps ownership, control rights, dilution, and option economics. Treated as “just a spreadsheet,” it becomes a liability; treated as a legal‑linked record, it’s an asset that

Startup Central

Legal Support for First-Time Founders in Their 30s & 40s: The Checklist That Actually Protects You

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Leaving a stable career to found a company raises the stakes — mortgage, family, limited runway. The core legal risk: treating law as an afterthought (copying templates, informal equity promises, or delaying counsel), which creates personal exposure and lost optionality.

Startup Central

4-Year Vesting with a 1-Year Cliff: A Practical Guide for Startup Founders and Early Employees

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Equity is often the biggest part of startup compensation — and one of the main tools for aligning founders, early employees, and investors. But vesting mechanics (especially cliffs) are easy to misunderstand, even for experienced operators. When expectations don’t

Startup Central

Know What a “Healthy” Cap Table Actually Looks Like

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... Founders increasingly rely on cap table platforms like Carta to manage equity, grants, and financing instruments as their companies grow past the “spreadsheet stage.” Done right, these tools give you a single, always-current view of ownership and dilution. The

Business Formation & Corporate Governance

What Is an Employer Identification Number (EIN)? A Practical Guide for Startups and Small Businesses

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... An Employer Identification Number (EIN) is a 9-digit federal tax identification number the Internal Revenue Service (IRS) assigns to identify a business (or other entity) for federal tax administration. Think of it as your company’s “tax ID” for

Business Formation & Corporate Governance

Can I Form an LLC in a State I Don’t Live In? (Yes — Here’s How)

Table of contents Loading the Elevenlabs Text to Speech AudioNative Player... The core question is simple: can you legally form an LLC in a U.S. state where you don’t live? In most cases, yes — states generally allow non-residents to form LLCs. But forming “out of state” doesn’t