Mital Shares Her Tech Startup and Legal Experience with us!
Are you a tech startup looking for legal tips? Mital Makadia is an expert in working with tech startups as she's a Partner at Grellas LLC. From the beginning of a tech startup, founders should make sure to avoid some mistakes. What are these mistakes?
Legal Mistakes Founders Make:
- Not making sure that the IP is your business's.
- You'll have to ensure that the IP belongs to your company and that you document anyone who helps you along the way.
- Not having an exit plan.
- You'll have to think of a plan for yourself and your company based on any relationship you or your company may get into.
You may be asking what an exit plan is? An exit plan is put into place just in case the business partnership doesn't work out, plans change, adjusting to ownership, and much more. You'll have to discuss your venture plans if you want to go public, how you want to grow, and other methods. Having an exit plan will also help you put guidelines in case you're giving equity but are unsatisfied with what the employee, partner, or another person provides your company.
As a founder, you'll also have to decide between becoming an LLC or C Corp. An LLC is for you if you're not looking into giving equity to people, you're not trying to be a tech startup, and you already have money coming in that is helping you grow organically. A-C Corp is for tech startups because of the limitations and investors. They both have advantages and disadvantages, such as qualifying as a QSB (Qualifying Small Business Stock), which gives a tax advantage.