How do I structure my business?

423 views
334 views

Published on

Presentation delivered to TeamCamp on May 7, 2009

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
423
On SlideShare
0
From Embeds
0
Number of Embeds
10
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

How do I structure my business?

  1. 1. How do I structure my business? Shane McLean LaBarge Weinstein Professional Corporation TeamCamp May 7, 2009
  2. 2. Three Basic Structures <ul><li>Sole Proprietorship </li></ul><ul><li>Partnership </li></ul><ul><li>Corporation </li></ul>
  3. 3. Sole Proprietorship <ul><li>Pros: </li></ul><ul><ul><li>Simplicity, ease of use, creation, dissolution </li></ul></ul><ul><li>Cons: </li></ul><ul><ul><li>Unlimited liability </li></ul></ul><ul><ul><li>Going it alone </li></ul></ul>
  4. 4. Partnership <ul><li>“ relation that subsists between persons carrying on business in common with a view to a profit” </li></ul>
  5. 5. Corporation <ul><li>Pros: </li></ul><ul><ul><li>Limited liability </li></ul></ul><ul><ul><li>Flexibility of Structure </li></ul></ul><ul><ul><li>Tax </li></ul></ul><ul><ul><li>Pro Investor </li></ul></ul><ul><li>Cons: </li></ul><ul><ul><li>Administratively more complex than other models </li></ul></ul>
  6. 6. Corporation Ownership Decision Making
  7. 7. Hybrids <ul><li>Prime/Subcontractor Model </li></ul><ul><li>Software Bill of Rights Model </li></ul>
  8. 8. One Model for a Startup Corporation <ul><li>Concept: </li></ul><ul><ul><li>Corporation </li></ul></ul><ul><ul><li>Group of Founders issued “free” shares </li></ul></ul><ul><ul><li>From beginning the corporation has the right to repurchase shares from founders </li></ul></ul><ul><ul><li>Founders “earn” the right to keep shares through the satisfaction of objectives and/or passage of time. </li></ul></ul>
  9. 9. One Model for a Startup Corporation At a minimum you will need: Articles of Incorporation, By-laws Etc. Founder Agreement Shareholder Agreement Employment / Contractor Agreements Intellectual Property Agreements
  10. 10. One Model for a Startup Corporation What does that cost? Articles of Incorporation, By-laws Etc. <ul><li>Budget $750 - $1,000 </li></ul>Founder Agreement <ul><li>Budget $300 </li></ul>Shareholder Agreement <ul><li>Budget $600 </li></ul>Employment / Contractor Agreements <ul><li>Budget $250 </li></ul>Intellectual Property Agreements <ul><li>Budget $250 </li></ul>More Customization = More Cost
  11. 11. THANKS <ul><li>Shane McLean </li></ul><ul><li>[email_address] </li></ul><ul><li>613 599 9600 ext 262 </li></ul><ul><li>www.LWLAW.com </li></ul><ul><li>www.ShaneMcLean.com </li></ul>

×