This post was originally published on this site
1. Costly incorporation mistakes
Incorporation is one of the earliest steps a founder should take to launch their startup venture. Soon enough, an idea will begin to materialize, and when this happens, you’ll want to think about building a team, entering into contracts, advertising, and making a sale; for this, you must incorporate.
Incorporating your startup involves making big decisions that impact your business’s future success and regulatory compliance risk. Delaying incorporation until after you’ve started doing business can present tax problems and leave your personal and professional assets at risk, while choosing the wrong corporate structure can disqualify you from special tax exemptions and deter investors.
To help founders incorporate, Deel has acquired Capbase. Capbase simplifies several critical steps for startups. On top of handling the entire incorporation process, it enables the formation of the board of directors and the creation of a stock plan.
In addition, Capbase can facilitate issuing and purchasing founder shares and managing SAFEs, convertible notes, and equity grants for investors, employees, contractors, and advisors. This complex web of equity distribution is tracked in an automatically updated cap table, ensuring a real-time view of the company’s equity structure.
To receive end-to-end incorporation and