Category Archives: Startup Jargon/Definitions

Incentive Stock Options vs. Nonqualified Stock Options

Companies and service providers to companies frequently confront this question. Which is better: an Incentive Stock Option (aka a statutory stock option) (an “ISO”) or a Nonqualified Stock Option (aka a Nonstatutory Stock Option) (an “NQO”)? What are the differences … Continue reading

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Question & Answer: IP Assignment Agreement

Question:  I had some friends help me in the very early stages of my startup.  For example, one of them helped design our logo.  Another one helped me with an instructional video explaining our product (the video can now be … Continue reading

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How Many Shares To Authorize?

I am frequently asked this question: How many shares should my startup authorize in its charter (its Articles or Certificate of Incorporation)? The trite, short answer is—authorize enough.  The longer answer is more nuanced, and basically boils down to—authorize enough … Continue reading

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US Provisional Patent Applications

Important Considerations for US Provisional Patent Applications By George Rondeau and Heather Colburn Many startup companies are formed around new ideas and inventions. Therefore, protecting such innovations may be extremely important, especially early on.

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What Is Rule 701 and Do I Need To Worry About It?

If you are a non-public company granting stock options or other compensatory equity awards to employees or consultants, you need to be familiar with Rule 701 and worry about complying with it. Rule 701 is the federal securities law exemption … Continue reading

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