Common Pitfalls for Startups

Presenters:

Peter Fusco Orrick, Partner

Sujay Tyle Frontier Car, Co-Founder & CEO

Michael Yang Orrick, Partner

Samir Bakhru Orrick, Senior Associate

Program Level: Beginner

Duration: 60 minutes

Recorded On: January 28, 2020

Program Description

Early stage startups need to get their legal house in order from the get-go — it’s imperative that relevant legal considerations are carefully navigated upfront to avoid fateful consequences down the road. Frontier Car Group (FCG)’s Founder & CEO joins his outside counsel at Orrick in an engaging and insightful discussion of the pitfalls to avoid when starting a new company.

This discussion explores several of the key areas that are ripe for mistakes and mishaps when starting a new company, including entity selection, equity distribution, vesting acceleration triggers, invention assignment agreements, and employee classification. The program concludes with an in depth discussion with one of Orrick’s compensation & benefits experts regarding equity compensation for early stage startups including the different types of equity awards that can be granted to employees, how to properly structure a stock plan and allocate an option pool and the importance of filing an 83B election with the IRS.

Learning Objectives

At the end of this session, participants will have a better understanding of:

  • What type of corporate form to select when forming a new company;
  • Creating optimal equity distribution among the founders;
  • Stock restriction agreements;
  • Triggers for acceleration of equity vesting;
  • Invention assignment agreements;
  • Employee vs. contractors classification considerations; and
  • Different types of equity compensation, how to structure an equity compensation plan and related tax issues.
CLE Info

This program is currently available for 1.0 general credit in the following states:

Alabama
Alaska
Arizona
Arkansas
California
Connecticut
Georgia
Hawaii*
Illinois
Minnesota
Mississippi
Missouri
Nevada
New Hampshire
New Jersey*
New Mexico
New York
North Carolina
North Dakota
Oklahoma
Oregon
Pennsylvania
Tennessee
Texas
Vermont
West Virginia
Wisconsin

In addition, we have applied for credit in the following states, and will promptly update the list above as the program is approved in each such state:

Colorado
Indiana
Ohio
Washington

*In Hawaii and New Jersey, we rely on their reciprocity policies pursuant to which our programs are deemed accredited once they are approved in the various reciprocity states where we apply such as California, Illinois, New York, Pennsylvania and Texas.

For information on attendance reporting, please refer to the CLE Info page.

Presenters:

Peter Fusco
Partner, Orrick

Sujay Tyle
Co-Founder & CEO, Frontier Car

Michael Yang
Partner, Orrick

Samir Bakhru
Senior Associate, Orrick

Program Level: Beginner

Duration: 60 minutes

Recorded On: January 28, 2020