This document provides an overview of legal and accounting basics for startups. It discusses entity formation, equity allocation and vesting, fundraising logistics and investor requests, hiring and firing employees, and maintaining legitimacy as a company. Key recommendations include keeping entity formation simple, being fair about equity distribution and using vesting, understanding financing terms and diligence, properly employing and compensating founders and employees, and following corporate procedures.
23. Biggest Take-Aways
• During formation keep it simple, use the
standard, and stay organized.
• Be fair and forward-looking about equity
ownership. Have Vesting!
• Stock doesn’t buy itself.
24. Biggest Take-Aways
• Be savvy about financing instruments,
terms, and common investor requests.
• Founders need to get paid.
• Employees must sign documents to
assign IP to the company.
25. Biggest Take-Aways
• If an employee must be fired, do it quickly
and professionally.
• Know your key metrics.
• Be a legitimate corporation by following the
rules and taking it seriously.