Slicing Pie’s Post

You are interested in establishing a warrant program in your startup. But not really sure what is up and down. This is a highly complex area. But don't worry, Amalie Paludan got your back. I can recommend the free webinar where you will get an introduction into warrant programs along with some hints about best practices.

This startup founder spent $80k on legal fees for a priced seed round. Here's how to spend only a third of that 👇 Spending over $50k for a priced equity round is considered normal in venture deals if you want high-quality, big law representation. These firms usually bill per hour, leading to potentially huge, unexpected bills—a common pain point for founders. Here's how to significantly save on legal fees: 1. Negotiate a fee cap with your lawyer for the financing. While lawyers typically bill hourly, many experienced VC lawyers will agree to cap their fees upfront for financings. This can provide cost certainty and help prevent ballooning legal bills. For context, I typically cap SAFE rounds at $3k-$7k and seed priced rounds at $25k. 2. Clean up your corporate documents before the financing. If your corporate records need cleaning due to past mistakes, expect higher fees. That's why I've created a Startup Due Diligence Package, which includes:   - Due Diligence Report: Our team meticulously reviews all your corporate documents, identifying and addressing any potential issues that could slow down the fundraising process.   - Prepare a Cap Table: We will prepare a cap table for you in Excel, Carta, or Pulley.   - Document Supplements and Corrections: We supplement any missing documents and correct mistakes in the corporate documents, allowing you to confidently navigate investor due diligence. Drop a "CHECKLIST" comment below, and I'll share a free investor due diligence checklist to help you prepare for fundraising. #startuplawyer #startupfounder

Partner Tom Bacon shares insights with Forbes on the favorability of U.K. startups listing in London. Tom suggests that regulatory changes targeting institutions should be just the beginning and that the government must now turn to tax incentives to further boost market participation.    Read more: https://bit.ly/42ncA11 #UKEconomy #StartUp #Law #LawFirm

From incorporation documents to taxes and annual reports, launching a business comes with a LOT of red tape 📑 Avoid any unexpected pitfalls with our guide to the top legal concerns for startups: https://lnkd.in/eeuNerNY

Attention startup founders! The Corporate Transparency Act is an important new law that requires most startups to comply with new reporting requirements. Dive into our recent blog to navigate the changes and stay compliant. https://hubs.ly/Q02sj0wz0

5 legal mistakes to avoid when drafting #startup documents 📄 ⚖️ Building a startup is exciting, but neglecting legal considerations can derail your journey. I'm, as a part of @IconPartners, your trusted advisor in IT law, highlighting 5 common legal mistakes in startup documents 📍Good standing gone bad 👉: Founding a company and maintaining good legal standing go hand-in-hand. 🤝 Ensure your company is compliant with state regulations, like paying franchise taxes and maintaining a registered agent. 📍 Boardroom blunders 👉 Stock transfers require board approval. Failing to do so can lead to disputes later. 🤝 Always get board approval for any transaction involving the sale, purchase, or transfer of shares. 📍Stock option plan 👉 A cap table referencing a non-existent Employee Stock Option Plan (ESOP) creates confusion. 🤝 Formalize an ESOP with proper documentation, including a plan, board approval, and shareholder approval. Verbal agreements carry no weight. 📍Ghostly shareholder 👉There is a list of individuals with unallocated shares indicates an incomplete transfer process. 🤝 Formalize share transfers with stock transfer agreements and board resolutions. Term sheets are not legally binding. 📍I'll sign up later 👉 Missing or unsigned documents raise red flags for investors. 🤝 Develop a system for negotiating, drafting, signing, storing, and sharing key documents. We can help you manage legal complexities and ensure your startup takes flight! Approach me today 🤩⚡️ #startup #corporate #duediligence #documentmanagement #legal

Navigating legal retainers can be tricky, especially for startups. At Kruze Consulting, we're frequently asked about this, so we broke it down for you. 💡 Key Insight: Treat legal retainers as prepaid expenses on your balance sheet. Not an immediate expense. Here's a quick rundown: - Prepaid Expenses: Book the retainer here. - Invoice Handling: Two options: * Debit against the retainer until it’s used up. * Pay invoices as they come while maintaining the retainer balance. 📌 Pro Tip: Always get detailed invoices from your law firm. For a detailed guide, check out our latest article. It’s a must-read for any startup looking to manage their legal expenses efficiently. 📈👨💼 Find the link in the first comment. #StartupFinance #BookkeepingTips

📊 Managing legal retainers can be tricky for startups. Our latest article breaks it down: 1 - Book retainers as prepaid expenses. 2 - Handle invoices either by debiting the retainer or keeping it topped up. Find the full guide—link to the article in the original Kruze Consulting post. #StartupFinance

The BIGGEST misconception that gurus dish out is that you need to form an LLC. That is not entirely true. Disclaimer: not legal advice. 😉 All you need to start a business is a sole proprietorship and an EIN, unless you are in an industry with a high risk of lawsuits. For example, you do coaching/consulting for tech startups. If you're looking to benefit from tax advantages, I suggest talking to a Certified Public Accountant (CPA) to explore your options.

🔧 Bookkeeping tip: Legal retainers should be booked as prepaid expenses. This ensures your balance sheet is accurate and compliant. 📜 Read the full article for more tips—link to the article in the original Kruze Consulting post. #StartupFinance