In order to start a successful company, owners have to overcome a lot of legal hurdles. Basically, they have to choose the legal structure that will best fit the business goals. At the beginning, start-up businesses have to deal with three main issues. This includes taxes, ownership or management and the owner’s limited liability.
Many business owners prefer entities like LLCs because of the protection they can get. The government does not impose a separate level of taxation for LLCs. However, the organization documents can be very challenging. This is why Founder’s Workbench was created that provides people everything they need to start a business. It features Document Driver and Founder’s Toolbox that provide online legal document generation and related information about starting up a new business.
Document Driver was designed to help start-up corporations. Document Driver produces the following legal documents.
• Certificate of Incorporation
The certificate of incorporation limits the board of director’s liabilities and establishes the business’ initial capitalization.
By-laws outline the procedural rules that govern the corporation. It also declares rules pertaining to the stockholders’ and board of directors’ meetings.
• Consent of Sole Incorporator
The consent of sole incorporator declares the initial board of director members and the approval of by-laws and certificate of incorporation.
• Consent in Lieu of First Meeting of Board of Directors
This document declares the company officers including the authorization to open corporate bank accounts. It also approves the founders’ stock sale and their agreement.
• Subscription Letter
The subscription letter serves as proof of the company’s purchased shares. As a proof of shares ownership, a common stock certificate comes along with each subscription letter.
• Founders Agreement
A company with two or more founders has to generate a founders’ agreement. This document contains the agreement between founders that restricts the transfer of shares. Also, it declares who will be elected as the BOD.
• Founder Stock Restriction Agreement
This document contains the agreement that vests founder shares. It also gives the company the power to repurchase the unvested shares.
• Contribution and Assignment Agreement
This document declares the transfer of intellectual property in relation to the business from the founder to the company
• Confidentiality and IP Assignment Agreement
This agreement restricts disclosure of any proprietary company information. This document also declares the company’s ownership over inventions and products. The founder, officer, director, employee and other company service providers are among the signatories.
How to Use Document Driver
1. Business owners have to accept all terms and conditions in using Document Driver.
2. Choose among the legal documents to be generated.
3. Fill in information like the company name, company’s mailing address, name of incorporators, incorporators’ mailing address, registered agent’s name and company’s fiscal year to end.
4. Number of founders should also be provided along with their name, address and number of shares to be issued to the founder.
5. Provide the number of directors.
6. Designate officers from president to treasurer with their names.
7. For the founder’s agreement, users have to choose the minimum percentage of shares of founders needed to modify the agreement.
8. Document Driver will also ask if the company wants to enter into a Founder Restriction Agreement.
9. For the Contribution of Intellectual Property, users only need to answer the yes or no questions provided.
10. Users have to specify the number of employees.
11. Document Driver will prompt users to save their answers that will allow them to load answers in the future.
12. Once done, users should choose the Assemble Now button to generate the documents.
Founders Toolbox is where start-up company owners can find interesting and helpful information about business. There are also resources for business opportunities and the latest developments in business.
This tool will calculate the dilution of company share required while taking outside funding. Also it can determine the payout in various sale of the business scenarios.
Is legal jargon haunting you? Deal dictionary explains all the investment and legal jargon in detail so that founders can understand while deal is going on.
Start-up companies that are having a hard time with various challenges can benefit a lot from Founders Workbench. All they have to do is have all of their information available before they use this tool. With a few details, they can come up with all the necessary documents and understanding they need in no time.