Common Legal Mistakes

Dangerous Ground

• Entity
• Equity
• Employment
• IP
• Financing
• Tax
• Professional Services

Entity

• Mistake: LLP/LP/LLLP
• Solution: C Corp/LLC
• WHY: anticipate investors; keep it simple

Equity

• Mistake: stock for all!
• Solution: vesting/options
• WHY: earn your place at the table; keep it simple; clean house

Employment

• Mistake: handshake
• Solution: paper
• WHY: mutual understanding; clear roles

IP

• Mistake: patent myopia
• Solution: TM/TS/C
• WHY: inexpensive; fundamental

Financing

• Mistake: fire sale!
• Solution: note/common
• WHY: future-proof; keep it simple; maintain control

Tax

• Mistake: valuation???
• Solution: 83(b); 409A
• WHY: keep IRS at bay; strategic planning

Professional Services

• Mistake: HELP!
• Solution: Plan & trust
• WHY: Make the $$$ worth it; long-term relationships

Major Themes

• Keep it simple
• Plan ahead
• Stay organized
• Maintain Control
• Keep it simple

QUESTIONS

Drew Coursin