1
Form the right legal entity in the right place so you can sign contracts, open a bank account, issue equity and raise.
Save moneyFundingRevenue
1.1
Why this step matters A company separates your personal finances from the business, gives the business its own contracts, bank account and intellectual property, and lets you issue shares to co-founders, employees and investors. Many startup programs, cloud credit offers and banks require a registered company before you can apply. Where and how you incorporate matters more than founders expect.… Read more →
Pros
- Choose the entity investors in your market expect
- Issue founder shares on day one with vesting
- Put every annual filing deadline in a shared calendar
Cons
- Forming an LLC and converting later without advice
- Ignoring the Delaware franchise tax calculation method
- Letting a co-founder build IP before the company owns it
Cost: $0-600 · Time: 1-10 days · incorporation delaware c-corp llc uk ltd ein
2
Agree who owns what, how shares vest and what happens if someone leaves, while everyone still gets along.
FundingNetwork
1.2
Why this step matters Co-founder disputes are one of the most common reasons early startups fall apart. Most of them come down to equity, roles and what happens when someone stops contributing. Settling these questions in writing while everyone is optimistic is far easier than doing it after a fall-out, a job offer or an investor's term sheet. Investors will… Read more →
Pros
- Have the hard conversations before money arrives
- Put every founder on vesting, including yourself
- Keep a simple, accurate cap table from day one
Cons
- Splitting equally just to avoid a conversation
- Handshake deals with no written agreement
- Giving large equity to advisers or early helpers
Cost: $0-2,000 · Time: 1-2 weeks · equity split vesting founder agreement 83b election cap table
3
Keep company money separate from personal money, get paid by customers and unlock card perks and credits.
Save moneyFundingRevenue
1.3
Why this step matters Mixing personal and company money is one of the fastest ways to create tax problems and weaken the legal separation between you and the business. A dedicated account makes bookkeeping simple, gives customers and investors a proper place to send money, and is required by most payment processors, payroll providers and startup programs. Your bank also… Read more →
Pros
- Have formation documents and tax ID ready before applying
- Check deposit protection and partner bank details
- Connect the account to bookkeeping from day one
Cons
- Paying business costs from a personal card
- Keeping all cash in one uninsured account after a raise
- Choosing a bank only for a sign-up bonus
Cost: $0-30/mo · Time: 1-14 days · business banking fintech corporate card bookkeeping deposit insurance
4
Put the core contracts, policies, IP protection and registrations in place so small legal gaps do not become big problems.
Save moneyFundingCustomers
1.4
Why this step matters Early-stage legal work is mostly about avoiding preventable problems: a contractor who still owns the code they wrote, a product name you have to abandon after launch, a privacy policy that does not match what your app collects, or a missing tax registration. None of these is expensive to fix early. All of them become expensive… Read more →
Pros
- Use reputable templates for routine documents
- Pay a lawyer for high-stakes or unusual contracts
- Keep all signed documents in one shared folder
Cons
- Copying another company's privacy policy
- Hiring contractors without IP assignment
- Launching under a name you have not searched
Cost: $0-1,500 · Time: 1-3 weeks · legal terms of service privacy policy trademark gdpr