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There are positives and negatives to both forms of entity when it comes to a startup business. Some investors will only invest in LLCs while a corporation is easier to sell shares that the entity has available. Ultimately it comes down what your advisors recommend for your specific situation but a LLC is generally the most common entity for a startup.
Know MoreStartup investors are every where. At the same time they can be hard to find. Friends and family are common sources for many early stage businesses. There are also private investors, angel investors, venture capital investors, investor groups, crowdfunding and grants available. The most important thing is to have a definitive plan for any funding you receive so it works for your ultimate plan.
Know MoreIntellectual property is often the inherent value in many startups. While your startup may not be profitable, it still holds value because of the technology you own, the customers or users that you have, the brand you are building and so much more. Protecting this intellectual property or IP can be tricky and confusing. As a general rule patents protect the product, trademarks protect the brand and copyrighting protects the content created. There are other ways to protect things like trade secrets, customer lists, business models and more through contractual agreements like non-disclosure agreements, non-compete agreements and non-solicitation agreements.
Know MoreIn most startup ventures, the focus is on growth. Hiring a sales team, developing the marketing, updating the product to meet customer demand, developing new markets, etc. can take up a lot of time and money. You have to remember that all that growth comes with risk. An attorney can help you limit your exposure. You also need to account for that fact that many of the people you deal with, like investors and other businesses, likely are represented by a lawyer. This is another reason why it may be prudent to develop a relationship with your own representation.
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