I stumbled upon this post by @startuplawyer Ryan Roberts. It's from March 2010 but still doing the rounds and still relevant. Source: http://startuplawyer.com/startup-issues/if-i-launched-a-startup
Do you think we could write an Australian version of this? Or is it already documented? For each item he provides a link to the justification/argument/ considerations about it so it's worth going to the source. The comments are good too. This is focused on startup businesses likely to seek VC funding in the future. US version: "Here’s what I’d do in the beginning: Incorporation (1) Entity Choice: Corporation or Corporation (2) State of Incorporation: Delaware (3) Authorized Shares in Charter: 10,000,000 Shares (4) Type of Shares: Common Stock (5) Par Value of Common: $0.0001 (6) Initial Founders Issuance: 8,000,000 Shares (7) Founders Equity Split: Depends on the Team, But Quickly and After the Awkward & Difficult Conversations (8) Vest Founders Shares?: Hell Yes (9) Vesting Schedule for Founders Shares: 4 years with a One Year Cliff (10) Consideration for Founders Shares: Cash & IP (11) Handling of “Lost Founders”: Lock Down the IP (then Wish Them Well)" AUS version: I don't know the answers. Lets assume the founders believe in what they're doing, expect to be around for several years and expect to employ staff in Aus. [Is that a reasonable assumption anymore?] 1) Pty Ltd (for reasons previously discussed in this group, if you can afford it) 2) Not sure it matters here as state taxes and law don't seem to matter until you're big enough to pay payroll tax. There are small state differences re grants, concessions. 3) Same argument as in the US applies. Granular enough to be flexible. 4) Ordinary shares 5-11 no idea! Mick from Pollenizer shared some docs ESOPs in this thread: http://groups.google.com/group/silicon-beach-australia/browse_thread/thread/29637594fe624fc9 Thoughts? Regards, Jeromy Evans http://www.linkedin.com/in/jeromyevans -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Visting http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
