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?
Determine strategy for a Board of Directors following eventual investment
Do you have a good attorney?
Ensure your by-laws are well-thought out and clearly written.
|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?|
|Establish clear IP strategy for company||If necessary, obtain a technology license or obtain a Letter of Clearance from your workplace declaring that they don’t own the technology
Utilize an attorney to draft Employment Agreements for new employees
Inventors get equity for value received when pre-existing IP is transferred to the company
It is rare that royalties are granted to the Inventors after company formation
|Recruit official Board(s) of Advisors||Types of advisory boards to consider: