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You also need to remember to file your 83(b) election with the Internal Revenue Service within 30 days after the grant/purchase date of the restricted shares (see tip #3 of my post “ FounderVesting: Five Tips for Entrepreneurs ”). Any IP created or acquired by a founder (e.g., code, logo, domain name, etc.) IP Ownership.
Foundervesting is the most common example. As an extreme but real example, once a standard background check which was run on the startup’s CEO reported that someone with his exact name from his exact town was a felon convicted of embezzlement. Lawyers going back and forth on minute/inconsequential details, of course.
This includes agreeing on how you will handle personal investments in the business, but it also includes many other topics such as founders’ vesting schedules and voting rights. Oh, and you’ll notice that they don’t yet have a name for their company. This will save a lot of pain down the road. warrants or discounts).
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