The Three Keys To Starting Your Own Successful Business - Page 6
Forming Your Company
How many founders do you have?How many shares should you issue?
How much stock does each person get?
Is everyone working full-time on the company?
Has everyone signed an NDA (Non-Disclosure Agreement) and IP (Intellectual Property) agreements?
What is the company's address and phone number?
Make sure no one has signed an NDA or IP rights agreement at another company!
Some of these sound like unnecessary questions to address.
Why should I have a friend I trust sign an NDA?
Why should we make employment agreements?
I'll tell you now from experience that it is necessary. You may be friends now, but you never know what will happen in the future. In addition, when forming your company it is an entity unto itself, which means it can be sold, traded or dissolved. Who knows who may be in charge of the company in the future? If you make verbal or handshake agreements on the amount of stock someone may get in the future and the company is then sold, those agreements go out the window.
Having all of these loose ends done from the beginning will help avoid future headaches and conflicts.
Actually forming your company legally isn't that difficult. A company really is only some paperwork in a filing cabinet.
There are a number of places you can go to and actually form a company online. Just remember there are tax requirements for a company and that you should look into all the legal and tax issues when you form it.
One of the main reasons you would want get all of these things completed and get incorporated is in preparation for the next topic.
"The Three Keys To Starting Your Own Successful Business - Page 7"
"The Three Keys To Starting Your Own Successful Business - Page 5"
"The Three Keys To Starting Your Own Successful Business - Page 7"
"The Three Keys To Starting Your Own Successful Business - Page 5"
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