I saw this post from a Guy Kawasaki interview. It’s a great overview of some of the things entrepreneurs ponder when starting a company. Although the questions are geared towards California entrepreneurs, they also apply to Georgia. Of course, you should check with your attorney for specific details. Here are the questions addressed:
- Can I start a technology company in the same business as my current employer?
- When should I incorporate?
- Why don’t I use a Limited Liability Company (“LLC”) since it is cheaper to start?
- Why does everyone incorporate in Delaware?
- Should we incorporate as an S corp or C corp?
- Should I incorporate offshore since my business will focus on China/India?
- Can I have everyone in my startup be contractors or consultants (“1099 services”) rather than employees?
- How can I grant stock options to employees and consultants?
- How does the corporation obtain ownership of the technology and IP from each of the founders which was developed before we incorporated?
- Can I hire people away from my former employer
- Can I file a provisional patent application myself?
- If we have been issued a patent, won’t that stop a Microsoft from copying us?
- Shouldn’t prospective investors sign non-disclosure agreements (NDAs) so that they don’t rip off our ideas?
- If my buddies and I own more than 50% of the corporation, don’t we control it?
- Why should founders vest–we’ve already been working on the business for two years?
- Why does it cost $50,000 or more to do a round of financing?
See the answers on Guy Kawasaki’s blog.