Starting a Business in Delaware

Lawyers typically charge  around $5,000 and take two or more weeks to prepare formation documents for early stage companies. Startup Documents gives you control over your documents for a fraction of the price. All it takes is three easy steps, and you’re on your  way to starting your company.
That’s because you probably signed an agreement at the start of your employment that says your current employer owns any ideas that you develop while employed by that company. A lawyer can help you take the necessary steps to take to protect your intellectual property , so that your future startup owns your ideas. The purpose of this post is not to debatewhether your startup should be a Delaware corporation. While we do work with a decent number Startup Lawyer of VC-ish backed Delaware LLCs , thevast majority of technology companies that raise venture capital either start or end up as Delaware corps. And the moment a lawyer starts playing contrarian with me, talking up why Delaware isn’t needed, or C-Corps are tax inefficient, I quickly end the exchange by asking how many VC-backed companies she’s actually worked with. Not small businesses or companies funded by local, non-institutional investors.

Not only does the corporate governance provide much-needed structure to help the startup obtain its goals and objectives, it balances the needs of each company participant. From shareholders to employees and the community, corporate governance ensures every need is balanced and met. If your Delaware startup chooses to involve advisors and equity is involved in the relationship, you will need to also formalize an advisory agreement.
To assist you, we've included a list of the best Delaware startup attorneys you may obtain the legal assistance you need to make your business a success. Consequently, companies can take advantage of established business laws and know with greater certainty how to avoid litigation and other potential disputes. With the proliferation of Delaware as the preferred state to incorporate, the vast majority of attorneys and investors have become familiar with Delaware’s laws and forms.

Delaware requires you to appoint a registered agent for your LLC. Reserve your name.If you aren't ready to register your LLC but are concerned your name might be taken by someone else, you can reserve it for a small fee. Names may be reserved for up to 120 days by paying the fee and submitting the proper form to the state authority. A Stockholder Agreement is a type of internal corporate document that establishes the powers and rights of stockholders. A Stockholder Agreement can place certain restrictions on when, how, and to whom a company’ stock can be transferred to.
If you are seeking outside funding for your startup, Delaware incorporation may be required by VCs or angel investors. Anyone suggesting otherwise is marketing a highly-polished time bomb as a solution. Delaware also does not impose taxes on intangible assets or royalty payments, which can help many corporations substantially lower their tax burdens. Incorporating in Delaware can also be completed very quickly, and there is no need to disclose the name of your corporation's shareholders or directors.
New York provides ample opportunities as well and is currently adopting policy initiatives to make it an even more startup-friendly state. New York has many of the best startup lawyers around offering expertise and advice on incorporating, raising money, contract review, and other services. Many of these lawyers are from a few of the country's most competitive law schools and are willing to work on a flat-fee arrangement. Our affordable Delaware real estate lawyers also provide client service across residential and commercial real estate disputes ranging from specific performance of a purchase agreement to land use or zoning issues and construction defect litigation. Although, real estate agents are generally prohibited from attempting to provide legal counsel or to serve as your legal representative in any manner regarding real estate law. Therefore, during the course of a property deal you should have your interests represented by an experienced Delaware real estate lawyer.

For later-stage investments, there are a lot of issues to consider. One important one is to make sure that the liquidation preference isn’t too generous. In the US for example, when you’re issuing securities to people if you don’t make proper disclosures to them about the risks of your business you can be liable for securities fraud. All of this to say, as an entrepreneur your time is better-used building your business and bringing the vision to life.
Starting a new business in San Diego, California, is complex and requires many different tasks. You'll have to decide how to incorporate, follow legal requirements when hiring employees, and understand the legal regulations around raising money and/or working with a venture capital firm. Working with a startup lawyer can help reduce the stress on startup business owners.

Articles are generally legal in nature but topics may include issues and current events as they relate to the startup ecosystem. Again, even though Delaware does not have a sales tax, as a business that sells goods or has employees, you’ll need to register with the Delaware Division of Revenue and pay a gross receipts tax. The specific amount you’ll pay for this tax will vary based on your business type.
We strive to provide exceptional service, valuable advice and practical solutions for our clients – from inception through all phases of a business cycle. As entrepreneurs ourselves, we recognize and appreciate the fast-paced tempo and hard work it takes to grow successful business. The main difference between the two boils down to control, regardless of what the worker may be called in any sort of agreement. If the startup requires that the worker show up at a certain time, work a certain number of hours, and be under a great deal of supervision, it’s unlikely that he is an independent contractor.
A Delaware LLC can always convert to a Delaware C-Corporation later on. Depending on the growth projection of the business, founders may be better off starting a company as a Delaware LLC and converting to a C-Corp once they are ready to raise funding. Delaware C-Corporations can also issue stock options to their employees. Startups use stock options as an incentive to attract talented individuals to the company.

Citron & Deutsch, a boutique startup attorney in Los Angeles, covers many issues for startups, businesses, and executives. Because every organization is unique, they believe in a personalized approach to you and your company to customize dynamic guidance and services to your specific needs. Taking their clients through every stage of the formation process, their highly competent attorneys value the attorney-client relationship, which instills confidence and trust in both sides. Mario's firm focuses on serving growth companies throughout the venture capital life cycle from startups to public companies. The firm provides services related to business law, specifically corporate, securities, business combinations and commercial transactions.