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?
What state should the company be formed in?
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
|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
|Determine need for Board(s) of Advisors||Types of advisory boards to consider:
|Determine need for Board of Directors||