Managing Equity and Intellectual Property for Startup Founders
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About this Capsule
Startup founders must establish clear legal and financial foundations by appointing a Delaware registered agent if not physically located in Delaware, assigning all intellectual property in writing to the company, and implementing founder equity vesting schedules with a typical four-year term and one-year cliff. Founders also need to file 83(b) elections within 30 days of receiving equity to optimize tax benefits and comply with Delaware’s annual franchise tax and reporting requirements. Additionally, understanding the conversion of SAFEs and notes during priced rounds and securing an EIN after incorporation are essential steps to maintain compliance and protect ownership interests.
Covered in this capsule
Founder legal basics: equity, IP, vesting.
Experienced lawyers are key for startups.
Avoiding startup equity filing mistakes
Try asking: “Which filing comes first after issuing restricted founder stock?”
Questions this capsule answers
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Managing Equity and Intellectual Property for Startup Founders
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