You only get to incorporate once, and you want to get it right. In this episode, co-hosts Halle Tecco and Michael Esquivel dive deep into the process of incorporation for startups. They cover everything from choosing the right business entity structure to splitting founder equity. You'll want to listen to this before filing your incorporation paperwork!
They discuss:
- How the choice of business entity structure depends on the goals and plans of the startup
- Why you should prioritize simplicity and avoid over-engineering the legal structure in the early stages
- Vesting structures, including alternatives to the traditional four-year vesting with a one-year cliff
- How to have open and transparent conversations among co-founders to determine fair equity splits and relative contributions
- Single vs. double trigger, and the importance of acceleration protection in the event of termination or an M&A exit
- What they think is the optimal number of co-founders
Co-hosted by Halle Tecco and Michael Esquivel, Closing Time is a podcast where you, the listener, get to be a fly on the wall during a startup pitch meeting. Imagine being part of a room where passionate entrepreneurs are pitching their healthcare startups, the innovations that could very well shape the future of healthcare. This podcast allows you to do just that.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.