When launching a new startup, you can face significant business and legal challenges. We have seen plenty of legal mistakes made by entrepreneurs and startup companies.
The following are some of the more common and problematic legal mistakes made by small and growing companies. These mistakes are made at the initial formation of the business, in the early stages of growth, and when dealing with employees.
Legal mistake #1: Not making the deal clear with co-founders If you start your company with co-founders, you should agree early on about the details of your business relationship. Not doing so can cause significant legal problems down the road (a good example of this is the infamous Zuckerberg/Winklevoss Facebook litigation). Think of the founder agreement as a form of “prenuptial agreement.” Here are the key deal terms your written founder agreement needs to address:
Dispatches From The Front 