T12.ai

Founders ?? you only need a “Minimum Viable Legal Architecture” early on in your business. Spending $10K + in legal fees out of the gate is not useful or necessary. There are really just a few issues to get right early on, and you can stack more on later as the business matures. 1. Equity Grants Need to get certainty around who owns what. Cap table management matters. I’d recommend using T12.ai or a similar affordable cap table and data room early on if you have multiple founders/investors. A few things to solidify with shareholders/members: vesting, termination, and share transfer restrictions. 2. Roles and Responsibilities Founders need to clearly set forth each team member’s roles so expectations are aligned. Most founder disputes center around this issue in some form or fashion. We’ve been using a Roles and Responsibilities Matrix with our founders and it’s worked great. List out all the tasks and assign a percentage to each founder. Some founders may be 100% responsible for a task, others may share responsibility 70/30. 3. Intellectual Property Founders need to ensure IP ownership of the company’s assets (e.g., source code, designs, trade secrets) remains in the company and not with an individual founder or third party agency. You need agreements with everyone touching IP assigning creations and inventions to the company. 4. Employment Law If someone is working for the company and they own less than 20% equity, businesses might be subject to minimum wage laws. Early founders like to work for sweat equity, which works when everyone is happy. However, if a minority shareholder gets sideways with the team, an easy target to come after are claims they weren’t paid. Also, if you hire contractors and consultants, make sure you don’t inadvertently structure the arrangement in a way that would classify them as a W-2 employee. 5. Entity Registration Founders need to run operations through a registered legal entity…a corporate or LLC. Just start with one of these. You can always convert to the other down the road. #entrepreneurs #founders #startups

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?? Recent cap table management headlines have stirred quite the conversation. As founders, we understand the value of trust and respect in business partnerships. At T12.ai our philosophy is simple yet powerful: Founders First. ?? The cap table management industry is constantly evolving - therefore it's crucial to have a partner who not only provides exceptional services but also aligns with your vision and values. Our commitment is to empower founders, safeguarding your interests and ensuring that every decision we make is in your best interest. ?? Transparency, respect, and unwavering support are the pillars of our approach. We believe in building relationships based on mutual trust and understanding, not just transactions. ?? Stay tuned for more insights on how we're redefining the category of cap table management. #FoundersFirst #InnovationWithIntegrity