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.
EE
Published 1w agoUpdated 13h ago 1,680
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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