Startup setup
Put the ownership on one page
Founders usually agree on the big things and skip the small ones: who owns what, who can sell, what happens if someone walks. Those are the questions an investor asks first.
I form the company, write the founder agreement and set up the equity so it can be explained on a single page. Then I get the other pieces in place, like the ones that say the company owns what you build.
What gets set up
The same few documents keep coming up. Here’s what I put in place and why.
Choosing the entity
An LLC, a corporation or something else, and what each means for taxes, investors and liability.
Founder agreement
Roles, ownership, decisions and what happens if a founder leaves or stops showing up.
Equity and vesting
A clear split, a vesting schedule and a record of every share or unit issued.
What the company owns
Assignments so code, designs and recipes belong to the company, not to whoever made them.
Contractors and advisors
Short agreements for people who help but aren’t employees.
Ready for a first round
A clean set of records and a short list of what an investor’s lawyer will ask for.
Setup questions
LLC or corporation?
It depends on whether you plan to raise investment, how you’ll pay yourselves and where you’re headed. We go through it on the intro call, and I write the answer down.
Can’t I just form the company online?
You can. The filing is the small part. The founder agreement, the equity records and the assignment of what you’ve built are what you can’t easily fix later.
What is vesting, and do I need it?
Vesting means a founder earns their shares over time rather than all on day one. It protects the company and the other founders if someone leaves early, and investors usually expect it.
What does setup cost?
A defined setup is a fixed fee, quoted in writing after the intro call. State filing fees are separate and paid to the state.
Three founders and a napkin?
Bring the napkin. We’ll turn it into something you can all sign.