Tag Archives: startup lawyer

Imposition of Vesting On Stock in a Financing

It is fairly common in connection with a financing that an investor will require a founder to agree to place a certain number of the founder’s fully vested and owned founders shares under an at-cost repurchase restriction, which at-cost repurchase … Continue reading

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Can An S Corporation Have Voting and Non-Voting Stock?

S corporations may only have one class of stock.  However, “[d]ifferences in voting rights among shares of stock of a corporation are disregarded in determining whether a corporation has more than one class of stock.”   Thus, an S corporation … Continue reading

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Why Do Companies Issue Preferred Stock?

Preferred Stock is stock which is “preferred” over common stock in any number of different ways.  For example: Preferred stock may have a liquidation preference, which is a right to be paid first a certain fixed or formulaic amount of money … Continue reading

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What’s Better For An Equity Incentive–Restricted Stock or A Stock Option?

Early stage companies frequently want to bring on key hires and incentivize them with equity, but do not know what type of equity award is the best from a tax perspective to both the employee and the company.  There are … Continue reading

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What Size Venture Fund Will Be Required To Register With The SEC?

The Obama Administration is proposing that venture funds above a certain size be required to register with the SEC.  “All advisers to hedge funds (and other private pools of capital, including private equity funds and venture capital funds) whose assets … Continue reading

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