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For Delaware startups, only one director is required, but you can have as many as you want. 

As a founder and stockholder, you are paying for all the shares because you will own all 6,000,000 shares.  The concept of vesting can be confusing to a lot of founders because vesting as it relates to founder shares is different than vesting as it relates to...

The Board Consent in Lieu of First Meeting is the first document that gets the business of the startup going. Here are a few of the most common resolutions adopted by the newly appointed board: Appoints the officers NOTE: Delaware requires at least a President and...

As a technology startup incorporated in Delaware, you will receive a tax bill from the State of Delaware.  It isn’t necessarily tied to income, but it is a tax you need to pay because the company’s place of origin is in the State of Delaware.  All active corporations...

You should file an 83(b) election when you are issued shares with vesting (which is the standard). If you don't file the 83(b) election, the IRS will consider each vesting milestone a taxable event. For example, let's say that you are sold and issued 1,000,000 shares...

A simple stock ledger should be created for each startup. This ledger contains the list of stockholders in the company along with: Stock Certificate Number Type of Stock Name of Stockholder Number of Shares Date the Shares Were Issued Address of Stockholder Date the...

Each time the startup issues shares, you need to consider (or ask your attorney to consider) conducting a state securities analysis. The securities analysis will involve reviewing the state securities laws to determine if a filing is required to obtain an exemption...

The standard for startups is to put vesting on the shares issued to the founders. Our recommendation is to put vesting on the shares. Here's what you need to understand: The Principle: Vesting is placed on founders' stock to make sure they stick around and work to...

"Every corporation organized under this chapter shall have such officers with such titles and duties as shall be stated in the bylaws or in a resolution of the board of directors which is not inconsistent with the bylaws and as may be necessary to enable it to sign...

The difference between a C-corporation and an S-corporation is merely a tax distinction. They are both the same legal entity -- a corporation. An S-corp (like an LLC) allows for pass-through taxation. Each dollar that comes into the company is only taxed on the...