Last year, more than 5 million new businesses were established in the U.S. While that may be great news for innovation and the American economy, startup founders face a unique set of legal challenges that could inhibit their success.
Some common issues include:
- Starting a company while still employed elsewhere
- Offering shares at different prices to investors
- Not understanding capitalization
- Misusing form documents
- Ill-documented relationships
- Not paying employees or treating everyone as contractors
