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How a Startup Lawyer Incorporates in Delaware

How a Startup Lawyer Would Incorporate Your Company in Delaware

The Startup Lawyer has a fantastic post detailing exactly how he would setup a company in Delaware (like he does for his clients). This includes:

  • Incorporating in Delaware as a C-Corporation.
  • Authorizing 10,000,000 shares of common stock at $0.0001 par value.

He details other issues like the appropriate amount of stock he would issue to the founders, vesting schedules and even how he would raise capital. Highly recommended.

The only thing I would add is that a startup doesn’t have to start by issuing that many shares, you can save money by starting with a smaller amount, for example, one thousand shares and then if you get to the point where you need to raise money or venture capital, you can amend your “Articles of Incorporation” for higher share amounts later.

This entry was posted on Thursday, March 18th, 2010 at 10:20 am and is filed under Incorporation. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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