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Hello world!

We'll guide you through the process of incorporating your company.

Perfect, let's get started.

Disclaimer:

Right now we only offer to file Delaware Corporations and Delaware LLC’s, which covers 90% of the needs of most startups.

Which type of company do you want to form?


We normally recommend Corporations for companies who expect to look for investors to scale up and go through several rounds of financing; i.e. the traditional startup model.

We normally recommend LLC’s for companies who sell more traditional products and expect to grow organically and not seek fundraising to scale.

Well a few reasons.

LLC’s are simpler and cheaper structures for taxation purposes. They are known as pass through entities, which means their earnings just pass through to the personal income taxes of their members. This means accountants don’t have to file a separate tax form for the company which also saves on costs. The downsides of LLC’s are that many investors don’t want to invest in them, because they become Members and will have to pay taxes on the Company earnings. There are also many institutional investors that are prohibited from investing in LLC’s.

Corporations are better for investors because investors can passively hold shares without having to worry about tax consequences until they sell them again sometime down the road. The downside of corporations are that they are taxed at a higher rate than LLC’s and they require separate filings with the IRS, which means added accountant bills. However, they are the gold standard. 95% of Companies in the United States are Delaware Corporations.

Still need help? Contact our partner lawyer who will answer your questions.

How many founders will you be?


We’re here to help you start up, but it’s up to you to decide if you want to go at it alone or with co-founders!

Entrepreneurship is amazing - no matter how many of you it is, we'll always be glad to help you out.

Great. This will be simple!


We will now ask you a few questions to put together the standard documents to set up your company.

LLC’s are set up with a certain number of “Units,” and your percentage of the company is referred to as your “Membership Interest” and you will be a “Member” of the LLC. You will also be a Manager but more about that later.

You will start out with a 100% Membership Interest in your LLC. However, you never know: you may want to add co-founders or employees later on. We will optimize the number of Units, so that there are enough Units to go around later on. This setup has worked for the most successful startups around.

We recommend authorizing 1 million Units just in case you intend to bring on other founders later on or issue units to employees.


You will start out with 500,000 Units, but don’t worry. That means you have 100% control of the company. The other 500,000 Units are available for distribution if you need them later.


The other 500,000 will just hang out in the treasury. If you own 100% of the issued units, then you own 100% of the company.


Life is full of surprises. You never know later down the road if you will want to add a partner to your business. We set up all LLC’s as Manager-managed, because it gives you more flexibility down the road. When you’re one person, it doesn’t really make a difference. You just sign everything on behalf of the LLC as Manager or you can even name yourself CEO.

As your company grows, and you decide to bring on a co-founder or partner, it is helpful to have a division between the individuals who own the company (the Members) and the individuals who run the business (the Managers). Investors, for instance, don’t want to have to vote on the day-to-day running of a company. So they can be Members but not Managers. People are happier to give you money when no responsibility comes with it.


  • Certificate of Formation
  • Operating Agreement
  • Statement of Organizer
  • Written Consent of Action in lieu of Organizing Meeting
  • Intellectual Property Assignment Agreement
  • Certificate of Equity Ownership

Great. This will be simple!

We will now ask you a few questions to put together the standard documents to set up your company.

We will optimize the number of shares, so that your Delaware taxes are the lowest possible, and there are enough shares to go around for your startup. This setup has worked for the most successful startups around.

We recommend authorizing 10 million shares just in case you intend to bring on other founders later on or issue stock to employees. We keep the par value at $0.0001 per share so you qualify for the minimum Delaware annual tax rate of $350 per year.


We will issue you one million shares. Remember, control of the company is determined by the number of shares issued not the number of shares authorized.


The other 9 million will just hang out in the treasury. If you own 100% of the issued shares, then you own 100% of the company.


You will just need our usual setup documents:

  • Certificate of Incorporation
  • Bylaws
  • Action by Sole Incorporator
  • Initial Board Consent
  • Stock Purchase Agreement
  • Intellectual Property Assignment Agreement
  • Stock Certificate

We'll name this baby ...


We’ll have to check in the database to see if it’s available. Remember, Corporations are required to have Inc. at the end of their name. So if you choose to name your company Acme, it will come out as Acme Inc. You can put a comma in there too if you like.


Please head on the State of Delaware’s website to do a corporation entity search. Simply type in the name you would like and see what comes up. If a corporation or an LLC with your name is already listed, it’s probably better to chose another name.

https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx

Need advice on this? Please Contact our partner lawyer.


So, you’re a team player?

Always great to be starting a company with help! We will now ask you a few questions to put together the standard documents to set up your company.

We will optimize the number of shares, so that your Delaware taxes are the lowest possible, and there are enough shares to go around for the founders and your future employees. This setup has worked for the most successful startups around.

We recommend authorizing 10 million shares just in case you intend to bring on other founders later on or issue stock to employees. We keep the par value at $0.0001 per share so you qualify for the minimum Delaware annual tax rate of $350 per year.


We will ask you what percentage of the company each founder will own and calculate your shares from that.


You will just need our usual setup documents:

  • Certificate of Incorporation
  • Bylaws
  • Action by Sole Incorporator
  • Initial Board Consent
  • Standard Share Purchase Agreement with vesting, acceleration and drag along rights
  • 83(b) Election Forms
  • Intellectual Property Assignment Agreement
  • Stock Certificate

So, you’re a team player?

Always great to be starting a company with help! We will now ask you a few questions to put together the standard documents to set up your company.

LLC’s are set up with a certain number of “Units,” and your percentage of the company is referred to as your “Membership Interest.” We will optimize the number of Units, so that your Delaware taxes are the lowest possible, and there are enough Units to go around later on. This setup has worked for the most successful startups around.

We recommend authorizing 1 Million Units just in case you intend to bring on other founders later on or issue stock to employees.


We will ask you what percentage of the company each founder will own and calculate your Membership Interest from that.


  • Certificate of Formation
  • Operating Agreement
  • Statement of Organizer
  • Written Consent of Action in lieu of Organizing Meeting
  • Intellectual Property Assignment Agreement
  • Certificate of Equity Ownership
  • Standard Equity Purchase Agreement with vesting, acceleration and drag along rights
  • 83(b) Election Forms

I want to form a:

The company will be composed of:

Perfect!

Hold on, can I get more info about units and ownership please?

Perfect!

Hold on, can I get more info about shares and ownership please?

Name of your company:



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