Founder Legal Checklist (Year 0)
The 18 legal moves every founder needs in the first 12 months — and the three that founders skip and regret.
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EntrepreneurBible Editorial
Published 2w ago 1,685
The boring legal stuff that determines whether you can raise, sell, or sleep at night.
Incorporation
- Choose entity type (C-corp Delaware is default for venture-backable; LLC for lifestyle).
- File certificate of incorporation.
- Issue founder stock immediately (don't wait — 83(b) clock starts at issuance).
- File 83(b) elections within 30 days. No exceptions.
Founders' agreement
- Vesting schedule — 4 years, 1-year cliff (standard).
- IP assignment from each founder to the company.
- Define "founder" — co-founder or early employee?
Operating basics
- EIN from IRS.
- Business bank account separate from personal.
- Bookkeeping software set up before month 2.
The three most-skipped
Trademark check on your name
A $300 search now beats a $30k rebrand at seed.
Privacy policy & TOS before launch
Required by most app stores. Required for any payment processor. Required by GDPR.
Cap table maintained from day 1
Not "we'll clean it up at seed." Maintain it from issuance.
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