business formation
The Ultimate Startup Checklist
By combing the Interwebs, poring through my personal library, and applying my own experience in working with more than 100 startups, I’ve compiled this checklist of 25 items to review and consider as you launch your startup. I hope you find it useful. Decide whether starting a business is right for you and what kind … Read More
Questions to Ask When Starting a Business
The most important legal consideration when you are starting a business is to make sure that everyone knows where they stand with the company. The next step is to make sure that there is clear, written documentation of everyone’s status in the company. To do this correctly, first you have to consider all the relevant … Read More
Solving Startup Founders’ Dilemmas
More often than not, most startup founders agree on some sort of equity allocation very early on in the process. Whether it’s a 50-50 split among two, or a 60-20-20 among three, or some other variation, the first thing most founders contemplate when they’re starting a business is who gets what. But this conversation – … Read More
The Stupidest Mistake Startups and Small Businesses Make
In Colorado, creating a new business entity is simple. It costs $50 and takes fifteen to twenty minutes to set up online. But just because it’s simple doesn’t mean people don’t get it wrong. In fact, many thousands of people get it wrong every year. In Colorado, every Limited Liability Company is required to include … Read More
No Exit, Early Exit, Venture-Backed Exits
Paradoxical though it may seem, how you start your business is often dictated by the end game. Not all entrepreneurs are in the startup world for the same reasons. Some want freedom and the ability to control their own schedule. For others, the motivation is to create something transformative with technology. Some harbor dreams of … Read More
When Does an S Corp Make Sense?
An S corporation is a business entity that combines many of the advantages of an LLC with the advantages of a corporation. Practically, the biggest hurdle for someone looking to start a corporation is the problem of double taxation. That is, paying taxes for the activities of the corporation and also for profits that are … Read More
Why Partnerships and Sole Proprietorships Rarely Makes Sense Today
According to the IRS, there are five types of business entities: Sole Proprietorships, Partnerships, Corporations, S Corporations, and Limited Liability Companies. Many state statutes allow for additional entities, such as Limited Liability Partnerships and L3Cs (You can register in Colorado as the former, not the latter). For the majority of entrepreneurs, the only real choices … Read More
Random State Incorporation is a Bad Idea
When I think of businesses that incorporate in any state other than their home state or Delaware, the expression that comes to mind is “too clever by half.” Unless there is a law prohibiting your business from operating in your home state or Delaware (for example, Amazon refuses to allow companies incorporated in certain states … Read More
Questions to Answer When Starting an LLC
Creating an LLC is easy. In Colorado, with a computer, an Internet connection, and $50, you can set up your business in about ten minutes. The only information you need to provide are the name and address of the registered agent, the principal place of business, and information about the person filing the articles of … Read More