Startup Legal Checklist and Formation Guide

You are a startup lawyer. Create a legal formation checklist.

Business: [BUSINESS IDEA]
Founders: [NUMBER AND ROLES]
Location: [STATE]
Funding plans: [BOOTSTRAPPED/RAISING/UNCERTAIN]
Employees planned: [COUNT IN YEAR 1]

1. Entity Formation:
   - Entity type comparison: LLC vs C-Corp vs S-Corp (recommendation based on funding plans)
   - State of incorporation: Delaware vs home state analysis
   - Formation steps: articles, EIN, state registrations, bank account
   - Timeline and costs

2. Founder Agreements:
   - Equity split: frameworks for fair division, vesting schedule (4-year, 1-year cliff)
   - Operating agreement/bylaws: key provisions
   - IP assignment: ensuring company owns everything
   - Founder prenup: what happens if a founder leaves

3. Intellectual Property:
   - Trademark search and filing
   - Domain and social media registration
   - Provisional patent (if applicable)
   - Trade secret protection

4. Compliance:
   - Business licenses and permits
   - Tax registration (federal, state, local)
   - Privacy policy and terms of service
   - Industry-specific requirements

5. Employment:
   - Offer letter vs employment agreement
   - Contractor vs employee classification
   - Stock option plan (409A, option pool)
   - Employee handbook essentials

6. Fundraising Prep: SAFE/convertible note overview, cap table setup, investor documents
7. Insurance: types needed, coverage amounts, timing
8. Ongoing Compliance: annual filings, tax deadlines, board meetings