For many early-stage startups, choosing between a convertible note and a SAFE (Simple Agreement for Future Equity) is one of the first critical legal and strategic financing decisions. While both instruments allow companies to…
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/ Commercial Law & Contracts, Finance & Banking, Securities Law
In a move to bolster investment in small business, the “One Big Beautiful Bill Act” (“OBBBA”), signed into law on July 4, 2025 (the “Applicable Date”), introduced significant changes to the Qualified Small Business Stock…
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/ Business Organizations, Securities Law, Taxation
Many early-stage companies give employees, consultants, advisors, board members and other service providers (referred to as “service providers”) an opportunity to own a stake in the company through the grant of compensatory…
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/ Business Organizations, Labor & Employment Law, Taxation
For startup founders, few concepts are as important—or as commonly misunderstood—as dilution. It often first arises during a financing round, when investors receive equity (i.e., shares) in exchange for capital. Dilution is not…
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/ Business Organizations, Finance & Banking, Securities Law
Unclear intellectual property (IP) ownership can pose significant challenges for startups, especially during a sale process (i.e., M&A) or investment rounds. Investors and buyers meticulously examine the chain of title for IP…
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/ Government Contracting, Intellectual Property, Mergers & Acquisitions
Increasingly, founders desire liquidity with respect to a portion of their equity stake before the company goes public or completes a complete exit event (like an M&A sale). Liquidity is desired for many reasons, including (but…
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/ Finance & Banking, Securities Law, Taxation
A key step in forming a company is issuing equity to the Founder(s). This equity is commonly referred to as “Founder’s Stock.” When issuing Founder’s Stock, it is important to consider whether a vesting schedule should apply…
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/ Business Organizations, Commercial Law & Contracts, Taxation
When an employee unexpectedly dies, companies often want to act quickly so as to minimize disruption to the deceased employee’s family. While that is an important goal, companies need to ensure that they follow federal and state…
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/ Insurance, Labor & Employment Law, Wills, Trusts, & Estate Planning
Founders and their startups are typically at the forefront of ever-evolving fields, from space exploration and satellites to life-saving medical devices and medicines. Safeguarding intellectual property is critical for startup…
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/ Business Organizations, Intellectual Property, Science, Computers, & Technology
Congratulations on incorporating your startup! Now that your business is officially on the map, it is time to take the next crucial steps to ensure a solid foundation for growth and success. This checklist provides new…
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/ Business Organizations, Securities Law, Taxation
Private company clients frequently ask us about granting compensatory stock options to their founders, employees and other service providers, including board members, consultants and advisors. Options and other equity awards can…
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/ Business Organizations, Securities Law, Taxation
Crowdfunding emerged as a popular and innovative method of fundraising for startups, providing a platform for entrepreneurs to raise capital through soliciting relatively small individual investments or contributions from a…
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/ Business Organizations, Finance & Banking
This is the second of a four-part series focusing on estate planning fundamentals for founders. This article will address an important topic for owners of Qualified Small Business Stock (QSBS) as defined in Section 1202 of the…
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/ Business Organizations, Taxation, Wills, Trusts, & Estate Planning
Opening a retirement savings plan for employees (including founders!) is often a low-priority issue for startups and small businesses, but several states, including California, are trying to change that. In 2016, the Department…
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/ Business Organizations, Finance & Banking, Labor & Employment Law
A core concept in trademark law that every startup founder should understand is “likelihood of confusion.” This legal standard plays a pivotal role in both trademark registration and enforcement. It’s essential for protecting…
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/ Business Organizations, Commercial Law & Contracts, Intellectual Property
