Form Company/Entity
Why is this Important? You need an entity in order to own IP, issue stock, receive funding, etc.
| Key Actions | Things to Consider | Tool Kit |
|---|---|---|
| Get legal advice on forming an entity | What type of entity is best at this time– LLC, C corp, etc?
Do you have a good attorney? Consider hiring law firms who will perform this task with deferred payment |
University of Washington Entrepreneurial Law Clinic |
| Determine if an investment memorandum is needed | Is it needed to raise seed money to continue development? | |
| Finalize a Founders Agreement | Are founders satisfied with respective shares of the business?
Founders shares granted during the company formation can be very inexpensive
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| Determine Capitalization Plan | How much stock should be issued and what type? | Capitalization Table Templates |
| Obtain a technology license or obtain a Letter of Clearance from your workplace declaring that they don’t own the technology | Who owns the IP? | |
| Transfer IP to entity | Inventors get equity for value received with IP assigned to the company
It is rare that royalties are granted to the Inventors after company formation |
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| Determine need for Board(s) of Advisors | Types of advisory boards to consider:
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LSWI Consulting |