Corpora Blog

Key takeaway While the 83(b) election form seems straightforward, some items require additional clarification.  This blog post provides actionable tips so that you get your form right. Intro You start filling in your 83(b) election form.  It seems like a breeze!  You fill in your name, your address,...

Key Takeaway You have 30 days from the day you get your equity to file an 83(b) election with the IRS.  You meet the deadline when you properly mail it on time – regardless of when it’s delivered. Intro You’ve heard the magic number so many times: 30 days. If you’re getting stock that is subject to vesting,...

Key takeaway The 83(b) election is available to you even as a non-U.S. taxpayer.  If there’s any possibility that you may become a U.S. taxpayer during your vesting schedule (usually, four years), then filing the 83(b) election while you do have the chance can help you save handsomely on taxes later...

Legal: as a startup founder, it’s probably not your number one skill. That’s normal. If you’re running a startup, you’re likely trained in another discipline. Think: computer science, marketing, finance or sales. Legal is, understandably, an afterthought – you’re focused on building. But the law...

One of the most common mistakes that those who are new to venture capital make is to confuse value dilution and percentage dilution, two related but different concepts. Before diving into the two most common types of dilution (value and percentage), let us first understand how most startup companies...

Navigating the legal landscape can be one of the most mental bandwidth-draining aspects of running a startup. This guide offers a generalized legal checklist built for a hypothetical startup at various stages of its lifecycle, focusing on the unique “Jobs to be Done” (JTBD) at each such stage.

Key takeaway: Safes aren’t equity (yet) or debt. Instead, they will turn into equity if the company does a priced round. If the company exits, the safe investor gets back their money along with a return. If the company fails, the safe investor is paid back the investment in full or in part, assuming...

Common Stock vs. Preferred Stock This is the first post of What’s The Difference?, a series of blog posts that highlight the main differences between similar or complementary concepts of startup law. Keep in mind that the post sacrifices detail for simplicity and is for informational purposes...

Missing deadlines (that may cost you $25,000) This is the fifteenth (and final… for now) post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity...

Not providing a vesting schedule This is the fourteenth post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix. Keep in mind that the post sacrifices detail for simplicity and is for informational purposes only....

Not taking care of post-incorporation essentials This is the thirteenth post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix. Keep in mind that the post sacrifices detail for simplicity and is for informational...

Granting options without a 409A valuation report This is the twelfth post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational...

Not having a Board approval for every equity issuance This is the eleventh post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational...

Winging your legal This is the tenth post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational purposes only.  It should...

Not making an 83(b) election: Company view This is the ninth post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational purposes...

Not making an 83(b) election: Employee view This is the eigth post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational purposes...

Signing a term sheet without consulting an attorney This is the seventh post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational...

Having “Excluded Inventions” in your PIIAs This is the sixth post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational...

Not planning for due diligence in advance This is the fifth post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational purposes...

Agreeing to give equity to a new hire, but sleeping on the actual grant This is the fourth post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity...

Presenting equity as a percentage, not a number This is the third post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational...

Not having a signed agreement with a service provider This is the second post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational...

Stock Power not being signed when granting restricted stock This is the first post of Mistakes Founders Make, a series of blog posts that shine light on legal mistakes that startups commonly make and attorneys have to fix.  Keep in mind that the post sacrifices detail for simplicity and is for informational...