I got issued founders shares in Oct 2019 for a startup. I didnt put any money into the company: neither did the other founders, our contribution will be the company IP. We subsequently raised some money based on a $ 2M valuation. I didn't file an 83(b) because, frankly, I missed the deadline, But if I make any money on this venture I will be happy to pay taxes. Its really just a super fun side thing. Is there any major issue I have tax wise you think I should be paying more attention to ? do I need to get my tax accountant involved ? he guy costs an arm and a leg for any consultation. Even if I need to talk to him I'd appreciate knowing what I should talk about.
I am in the process of starting a business with some friends based on a game that one of them created for a weekend zoom call. We all thought it would be a fantastic idea to bring to the market and attempt to launch this thing as an LLC partnership. Right now we are having some discrepancies on how to divvy up the equity for the partnership and I am looking for some advice because as it stands, I'm not certain if we have covered the bases properly. Apologies for the clunkiness of this mobile posting! Here is our scenario:
Founder 1 (CEO): 40% TBD (CFO): 10%
Second 50% is where all seed money is coming from (19k):
Founder 2: 1k (2.63%) Founder 3: 1.5k (3.95%) Founder 4: 1.5k (3.95%) Founder 5: 2k (5.26%) Founder 6: 2k (5.26%) Founder 7: 3k (7.89%) Founder 8: 3k (7.89%) Founder 9: 5k (13.16%)
As it stands, the one half of the company is owned by the CEO and the CFO, and the other half is owned by the investors. The CEO, who came up with the original idea, is not able to invest at this time and the CFO has yet to be assigned and can be filled by any single individual.
So far we have decided that all partners will have an equal vote with the CEO having an additional tie breaker vote. We have also agreed to each put in an equal amount of work into the company and reassess our standings at the end of the calendar year.
I'm here for advice because right now I am feeling like the CEO and CFO equity amounts are far too high, especially that our CEO (Founder 1) is not putting in any seed money at all and does not plan to buy into the company either. The understanding is that since he came up with the original idea and that he will be putting in the most work towards the company is how we came to the original 40%. My feeling at this point is that the money investors are not getting the right cut at this moment when we have all agreed to put an effort into this company. The company would likely not start or run without the labor of the investors. I am also at the feeling that the CFO percent is far too high being that our startup has zero overhead and little/no costs. Essentially the job would be basic book keeping is how I see it at the moment. I proposed that both of these be lowered to 32/6 equity between the two positions leaving 62% to the seed investors.
I'm curious if anyone has had to deal with this scenario and if they have any structural advice?
Hi reddit! So my fiancé and I were supposed to be getting married this Sunday May 24, but we had to change plans due to COVID-19. This is unfortunate, be we turned lemons into lemonade! With this extra time, we were able to create a business together. As my fiancé is a dentist (and soon to be medical doctor as well…he really loves school haha), we decided to create a teeth whitening product geared for brides to be (anyone can use the product though!). We are launching on Product Hunt this Sunday and could use any advice/support possible. As we are both healthcare workers, we are extremely new to the startup game and welcome all suggestions. Thanks reddit!
Has anyone launched a new website with pre-orders before launching on Kickstarter? I'm always interested in brand launches and noticed Superfat did this strategy and had great success on Kickstarter. Wondering if there are other examples and what your thoughts are on launching pre-orders (I think they launched with a 50% discount) then on Kickstarter (40% discount) before having product to sell.
I dont know too many people in this industry and im wondering if theres any obvious ways I can get people to join my startup. i was able to get a couple people from instagram but its too expensive to market my posts for the conversion im getting. I'm still at preseed stage and its hard to find people to work for free until the time being on my AI deepthinking idea. Any help would be greatly appreciated!
I made a post about a month ago asking whether or not I should have an app developer sign an NDA before working with them. I was recommended to have them sign an NDA and work-for-hire agreement. What's the main difference between these 2 & which one would be the most beneficial for someone new to business & with a tight budget?
Happy Monday y'all,
OK so I'm currently building a marketplace, but the long-term roadmap is is to create a Market Network. Essentially a SaaS tool to manage workflows, with an underlying marketplace to provide key connection points whilst using the SaaS.
My question is, if I have a good team, revenue and a compelling roadmap, do I need to have CAC, LTV and other salient unit cost metrics calculated before an investor will be interested in the project?If so, how do you go about doing this when all I currently have is a Wizard of Oz Marketplace…
I have a couple tasks I need to do that are comparable to making your own car. To use the car analogy, there's no set time on how long it'll take to bud it, but I can assume a year is good.
In the metaphorical car, there are smaller parts that will take a month on average to make. Likewise, I'll have to break up the year into shorter periods labeled "time to build chassis," or something like that.
These overall tasks, like the chassis, will require day-to-day tasks. However, things break and setbacks come up. Likewise, I really can't plan an exact schedule for the next two weeks.
On top if this, I also have about 3 other metaphorical projects that need to get worked on, plus school. My schedule's busy and I've got a lot if stuff that can sometimes get crowded out by other things until the deadline comes too close.
I find that daily schedules work pretty well, but sometimes tasks take a bit too long or longer than I thought, just because they're more complicated than I initially thought. Most of this prevents me from scheduling the next two days at the same time.
I've also struggled with procrastination, which is something I hope this will help with.
What are some good apps to help me with all of this?
I've recently started a company that provides the website owners a new stream of income, however when I go to pitch it I fear that the idea can be stolen or replicated.
I know that execution and first to market advantages are king, but other than that would you have any suggestions to pitching your business while making sure nobody steals your idea?
Thank you for any and all help.
Hosting a 4 hours focus work session on Zoom (8 AM – 12 PM EST) for anyone working on independent intellectual projects. Your video should be on but your mic should be muted. Get your productivity back by feeling less lonely. (Only 20 participants allowed to make this work)
We'll do 30 mins muted work sprints. 5 mins coffee break where we unmute and talk about the different projects we're working on.