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Thread: What Legal Steps Should I Take To Protect Myself and My Company?

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    Default What Legal Steps Should I Take To Protect Myself and My Company?

    Let me tell you what we're already doing: Ryan, who is currently enrolled in college for server administration (yes, he changed majors he apparently really likes servers lol), and I want to take my web design business and turn it into a larger website management company. Once I have everything from the accident sorted out, which is going to cost $500 plus however much my premium goes up, we're going to write a business plan, marketing plan, and financial plan. We may even write a special Stacktron plan in case we end up in the same exact situation Stacktron got into when it failed.

    Now here comes the fun legal stuff: Since I actually made money from the buyout of Stacktron my parents have begun to take my business ventures a lot more seriously, and they're on board for whatever I need to do that involves them. We're going to register the company in Delaware and operate in New Hampshire at a small office space we're renting for $300 a month. We are going to register the company as a c-corporation. My ownership will be cosigned by my parents until I turn 18 along with them acting as my proxy if needed. My dad also wants to buy 1% of the company and then wants to sell it once I turn 18 to me making me the majority shareholder in the company. I will own 11% at that point and Ryan will own 10% assuming he doesn't buy more.

    I have a few questions for all you SBFers: Other than our partnership agreement, should I have a pre-made NDA written up for our clients to sign? Should I write an agreement for them to sign unless they decide they want to write it?

    Since we're on the topic of the company what steps should I take to hire independent contractors? If the workload becomes too much I want to hire on-site independent contractors to help with it and hire them as we expand into other things like graphic design, financial management, business development, etc. as I already do business development, financial advisory, and website design for a few local companies in my area. However, if we make enough money to I want to begin to hire employees to the company within the next 5 years. What should I do there?

    Thanks guys c:

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    Quote Originally Posted by Owen View Post
    My ownership will be cosigned by my parents until I turn 18 along with them acting as my proxy if needed. My dad also wants to buy 1% of the company and then wants to sell it once I turn 18 to me making me the majority shareholder in the company. I will own 11% at that point and Ryan will own 10% assuming he doesn't buy more.
    I can't help you with most of your questions, but who owns the other 79%?
    Brad Miedema
    Fulcrum Saw & Tool

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    Quote Originally Posted by Fulcrum View Post
    I can't help you with most of your questions, but who owns the other 79%?
    No one. If we need investors we will sell more stock in the company, but we probably won't be looking for investors for a while as all this is is a small business.

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    Quote Originally Posted by Owen View Post
    We're going to register the company in Delaware and operate in New Hampshire at a small office space we're renting for $300 a month.
    Why register in Delaware, and why rent an office space if your work (assuming hosting/server management) can be done remotely and primarily by independent consultants?

    Quote Originally Posted by Owen View Post
    We are going to register the company as a c-corporation.
    You may want to speak with an accountant prior to making this decision just to make sure this is in your best interests.

    Quote Originally Posted by Owen View Post
    Other than our partnership agreement, should I have a pre-made NDA written up for our clients to sign? Should I write an agreement for them to sign unless they decide they want to write it?
    Two items that come to mind are a non-compete agreement (2+ years if possible in your state) along with language somewhere regarding poaching of your clients/accounts.

    You always want to write the agreements so they favor your interests, then if there are any changes have them reviewed by your lawyer. The details in this language can make/break the agreement so do not do this yourself.

    Quote Originally Posted by Owen View Post
    Since we're on the topic of the company what steps should I take to hire independent contractors? If the workload becomes too much I want to hire on-site independent contractors to help with it and hire them as we expand into other things like graphic design, financial management, business development, etc. as I already do business development, financial advisory, and website design for a few local companies in my area. However, if we make enough money to I want to begin to hire employees to the company within the next 5 years. What should I do there?
    First you need to evaluate that they are independent contractors where nothing special is needed other than reviewing/signing their contracts and paying their invoices, or if they are employees and you need to perform background checks, follow tax guidelines and pay taxes accordingly (Work with your accountant here).

    BTW - I got your PM I just haven't had a chance to follow up on it yet - hopefully by this weekend.

    Thanks guys c:[/QUOTE]

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