YC Lecture 18- Legal and Accounting Basics for Startups(Kirsty Nathoo, Carolynn Levy)
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The lecture discusses the basics of legal and accounting considerations for startups, including formation, equity allocation, protecting assets, raising money, hiring employees, and entering into contracts.
Highlights
- To protect personal liability, startups should form a separate legal entity, with Delaware being a popular choice due to its clear laws and investor familiarity.
- Documenting paperwork and keeping it in a safe place is essential for due diligence during times such as fundraising and acquisitions.
- Equity allocation, or how the company’s stock is divided, is a crucial issue that founders must address and legally document.
- Protecting assets, such as intellectual property, is another important legal consideration, with founders typically assigning these assets to the company.
- Startups must also navigate legal requirements and considerations when raising money, hiring employees, and entering into contracts.
