Business Law

Ask a business lLawyer. Get business law questions answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

My co-founder and I are currently filling out the

Customer Question
documentation to incorporate a startup...
My co-founder and I are currently filling out the documentation to incorporate a startup. Regarding issued stock: I know that most of the information I have read and previous experiences say that 10,000,000 shares authorized and issuing about 60% to the founders is a general approach. My questions is this: how many preferred stock options should we leave room for? We are going to be seeking multiple rounds of funding and not sure how hard it is to add preferred stock options later as opposed to preferred blank checks.
Submitted: 2 years ago.Category: Business Law
Show More
Show Less
Ask Your Own Business Law Question
Answered in 1 day by:
3/18/2016
Business Lawyer: Richard, Attorney replied 2 years ago
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 57,226
Experience: 32 years of experience practicing law and a businessman.
Verified

Good afternoon. My name is ***** ***** I look forward to helping you. Are you still needing assistance?

Ask Your Own Business Law Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a business lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Infolawyer Your Own Question
Infolawyer
Infolawyer
Infolawyer, Attorney
Category: Business Law
Satisfied Customers: 2,057
2,057 Satisfied Customers
Experience: Experienced lawyer

Infolawyer is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

2,057 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

778 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

683 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

604 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
Do you do business law? Corporation formation? Pa. I am in
No, I am in the process with Legalzoom now and have a question on issuing stock … read more
Lori
Lori
Juris Doctor
2,134 satisfied customers
I want to open a startup in Delaware, and I live in
Hi, I want to open a startup in Delaware, and I live in California. I have an angel who is investing. I would like to know what type of company to open to enable the least amount of taxes for the comp… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
I am opening a company, a startup. I need advise on options
Hello, I am opening a company, a startup. I need advise on options to open it in Delaware, C-Corp and how to distribute shares. I have an angel investor and I need to sign a contract. I want to make s… read more
DamienJD
DamienJD
Attorney
Doctoral Degree
5,391 satisfied customers
I am domestication my business and they are asking the
I am domestication my business and they are asking the following. Stock must be authorized in Article III. Please provide the amount of stock authorized in Article III. Depending on the amount of shar… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,773 satisfied customers
I have a question about joining a "startup". I was told by
i have a question about joining a "startup". I was told by my CEO that I would be given "founders shares", and how important that is. I was told that they would be non dilutive, I'd own 1% of the comp… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
When I bring in a new investor, do i need to issue new
When I bring in a new investor, do i need to issue new shares each time? If so, how is the new share issuance determined. Example: we were authorized 10,000,000 shares at incorporation; 7,000,000 to m… read more
socrateaser
socrateaser
1,031 satisfied customers
State: DE What document do I need to sign when I incorporate
State: DE What document do I need to sign when I incorporate and purchase shares for my company as a founder? If you have a boilerplate agreement please send. Also, can I purchase said ownership by de… read more
Maverick
Maverick
Doctoral Degree
6,342 satisfied customers
I'm incorporating a new C-Corp in Delaware and I have some
Hi, I'm incorporating a new C-Corp in Delaware and I have some questions: I'll operate in NY. The Corporate Bylaws document should be for NY or for Delaware? According to the officers: Can be this off… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
Corporate Structure Introduction NewCo a planned start-up
Corporate Structure Introduction NewCo a planned start-up is creating an App integrating communication, compliance and training on regulatory product such as chemicals. Founders are CT (me) and TJ who… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
A start-up company is looking for guidance during funding round...I
A start-up company is looking for guidance during funding round... I am the founder, President, and CEO of a start-up company - a domestic corporation in New York, currently with S-corp tax status. I … read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,773 satisfied customers
Hello, I am considering starting a software company that
Hello, I am considering starting a software company that will build mobile software solutions and would like to incorporate as a C-Corporation to structure this business for venture capital funding do… read more
Richard
Richard
Attorney
57,226 satisfied customers
I am currently starting a new tech company. I dont have alot
I am currently starting a new tech company. I don't have alot of funds right now to hire a lawyer, so I thought i'd get some advice here first. I know that I need to start a C Corp, which I plan on do… read more
Dimitry K., Esq.
Dimitry K., Esq.
Attorney
Doctoral Degree
1,611 satisfied customers
Hello, Im currently going through a process of withdrawing
Hello, I'm currently going through a process of withdrawing from a [statutory] close corporation in Missouri as both a co-owner (co-founded the company with two more people) and a shareholder. The ent… read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers
Under full ratchet anti dilution is there any circumstance
Under full ratchet anti dilution is there any circumstance under which the preferred (non diluting) share holder can INCREASE the percentage holding originally issued under anti dilution clause? I'm a… read more
BizIPEsq.
BizIPEsq.
Employment Technology & Business Lawyer
Doctoral Degree
375 satisfied customers
Hi, My wife recently incorporated a c-Corp in Georgia. I
Hi, My wife recently incorporated a c-Corp in Georgia. I would like to be added to the corporation at a later date (say 1.5yrs from now) as the primary owner/co-founder. I am not currently listed as o… read more
Legalinfomd
Legalinfomd
Partner
Juris Doctorate
160 satisfied customers
I am Incorporating my business in Wisconsin. I am at the part
I am Incorporating my business in Wisconsin. I am at the part were it asks you about how many shares I will authorize and how many the corporation can issue. If I plan on there only being 2 of us owni… read more
WiseOwl58
WiseOwl58
JD Honors Graduate
4,232 satisfied customers
I am founder in a new startup company with a billionaire investor
I am founder in a new startup company with a billionaire investor who is investing $2 million (250K, 250K, 750K, 750K) of the $2.15 million we have raised. We are trying to keep him from getting over … read more
JG
JG
Doctoral Degree
258 satisfied customers
Hi, I recently learnt about a special class of stock called
Hi, I recently learnt about a special class of stock called the Founder's preferred, which seems to be gaining traction especially among technology companies in Silicon valley. This is a way to issue … read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x