How to avoid the Top Ten Legal Mistakes Made by Entrepreneurs
Found an article at the Center for Entrepreneurial Studies I wanted to share: Top Ten Legal Mistakes Made by Entrepreneurs.
- #10: Failing to incorporate early enough
- #9: Issuing founder shares without vesting
- #8: Hiring a lawyer not experienced in dealing with entrepreneurs and venture capitalists
- #7: Failing to make a timely Section 83 (b) election
- # 6: Negotiating venture capital financing based solely on the valuation
- #5: Waiting to consider international intellectual property protection
- #4: Disclosing inventions without an NDA, or before the patent application is filed
- #3: Starting a business while employed by a potential competitor, or hiring employees without first checking their agreements with the current employer and their knowledge of trade secrets
- #2: Promising more in the business plan than can be delivered and failing to comply with state and federal securities laws
- #1: Thinking any legal problems can be solved later
Check out the full article for more details. Forewarned is forearmed.
On a lighter note, here’s David Letterman’s Top 10 Favorite Names of California Residents:
