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Set Up Your Start Up London
This document provides 10 legal tips for setting up a startup in the US. It discusses how to incorporate a company and which state to choose, like Delaware or California. It also covers different entity types like corporations and costs associated with startup incorporation and maintenance in both the US and UK. Additional topics include intellectual property strategy, hiring considerations, founders agreements, and differences between investment terms and structures in the US versus the UK.
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Set Up Your Start Up London
- 1. 10 Legal Tips Setting Up Your Start Up in the US
- 2. Set Up YourStart Up setupyourstartup.com facebook.com/SetUpYourStartUp Poland Germany Greece Chile UK
- 3. About me ●EU & US educational & professional background ● 6 years Silicon Valley experience ● Set up & consulted 40+ startups internationally
- 4. 1. How toincorporate Do it online... ...or hire an attorney!
- 5. 2. Where toincorporate 1 CUSTOMERS 2 INVESTORS 3 TAXES
- 6. 3. Which State Delaware California New York
- 7. 4. Which Entity Limited liability protection BOD Annual Meetings Investors’ Preference Taxation Corporation
- 8. 5. Logistics BusinessAddress Registered agent Bank Account Accounting Logistics
- 9. 6. Costs inUS Incorporation Maintenance 1st Year Legal fees $1,500 - $3,000 $500 Filing fees $300 $400 DE Secretary of State Registered Agent $50-$250 $50-$250 Tax filings 0 $1,000 - $1,500 Bookkeeping 0 $500 - $1,000
- 10. 6. Costs inthe UK Incorporation Maintenance 1st Year Legal fees £800 - £1,000 (including VAT registration) £180 Filing fees £13 £13 Registered Agent 0 £180 Accounting fees 0 £500 - £1,000 Bookkeeping 0 hourly rate
- 11. 7. IP strategy Patent Trademark Copyright Licensing NDAs IP strategy
- 12. 8. Hiring -Independent Contractors - IP Assignment - Confidentiality - Termination
- 13. 9. Founders’ Agreements - Percentages - IP Assignment - What happens if a founder leaves - Non-Compete
- 14. 10. Common mistakes - Hiring without Agreements - Founders’ Disputes - Complicated Structures - Overthinking
- 15. Investment Terms USvs UK
- 16.
- 17. Who is goingto do the work Your attorney... ...the investor’s attorney
- 19. Terms you arenegotiating Liquidation preference Company valuation Board seat Option pool Terms
- 20.
- 21. Convertible notes ata glance - It is a loan (sort of) - No valuation - Speed, simplicity & cost
- 22. Investor’s Ionpvtieonstor’s option Take his money back Convert into shares
- 23. Equity Financing -Valuation - Preferred stock - Expensive - due diligence - Vesting / option pool Convertible Note - No valuation - Less complicated & cheaper - Debt Equity vs Convertible Note
- 24. US - Highervaluations - Less veto rights - No Drag Along - No vesting in Term Sheet UK - Lower valuations - More veto rights - Drag Along is common - Founders’ vesting - SEIS US vs UK
- 25.
- 26. Let’s connect linkedin.com/in/tsakona facebook.com/ctsakona twitter.com/ctsakona christina@tsakonaslaw.com christina@dimitrioulaw.com US EU