Avoiding Common Legal Mistakes Startups Make

As a startup company, the decisions you make when forming and organizing your company and operating on a limited budget can have consequences that are difficult or expensive to remedy when you have an investment deal on the line. This presentation will address the top legal mistakes that early stage companies make when starting their businesses, which can include:

• failing to incorporate early and select the proper entity
• failing to identify and protect intellectual property
• failing to have formal, written founder agreements
• issuing too much equity to co-founders and service providers
• issuing equity without vesting
• not complying with federal and state securities laws
• promising more to investors than can be delivered
• not complying with employment laws, including CA AB5

Whether you are still at the cocktail napkin stage or ready to incorporate, this presentation will provide valuable information that will positively impact the success of your startup.

StartupSac Office Hours is a monthly meetup that features a presentation from a subject-matter expert that focuses on helping entrepreneurs advance their business. View recordings of previous Office Hours meetups here.

The Mission of StartupSac is to accelerate Sacramento’s startup and innovation ecosystem by informing, educating, empowering, and connecting its startup founders and innovators. Learn more here.

About Our Presenter

Chris Russell, Corporate Attorney and Partner, Stoel Rives LLP

Chris Russell actively aids many emerging companies to achieve their financial and corporate objectives. Many of these businesses are focused on renewable energy, life science, software, hardware, agricultural technologies and clean technologies, but Chris has experience working with an array of companies in various industries on corporate and financial matters.

With a broad transactional and corporate governance experience, Chris guides entrepreneurs and business leaders on corporate issues related to all aspects of its business and their fiduciary duties in significant transactions. Chris brings substantial experience to key transactions affecting a company’s growth, including debt and equity financings, joint ventures, corporate restructurings, licensing transactions and mergers and acquisitions. Clients rely upon Chris’ insights on both legal and business matters in such transactions.

Chris also has significant experience in private equity fund formation and has advised general partners and institutional investors in connection with the formation of venture capital, real estate, buyout and other private equity funds.

About Stoel Rives

Stoel Rives is a leading corporate and litigation law firm with more than 350 attorneys in seven states and the District of Columbia, including offices in Sacramento and San Francisco.