What is a Corp?

“Corp” stands for “corporation.” If you see it after the name of a company, it means that company is legally incorporated in at least one state. The founders have filled out all the paperwork, paid all the fees, and is viewed as a Corporation by the government and the IRS.

Is a Corp different from an Inc?

Corps and Incs. are virtually interchangeable when it comes to legal structure, compliance obligations, limited liability or tax structure. But that doesn’t mean you can use the terms interchangeably! Once you register as either a Corp or an Inc, you have to use the term you registered with on all of your legal paperwork.

How does a Corp work?

[H3] Structure of a Corporation Let’s look a the structure of a Corporation. Cor...

The graveyard might be the last place on Earth you’d care to visit, but, if you don’t want your company to go under, it’s a good idea to pay attention to what killed other similar companies.

Grab your flashlight, Founders, and head to the Startup Graveyard. “This site is a resource for entrepreneurs to avoid making the same mistakes as failed startups. We hope that this project can help de-stigmatize failure, increase transparency, create a community and improve the information on the site.”

Of course projects have unhappy endings. Call them failures if you will. But if you believe in process, take the long view of life, and have the courage to look at startup corpses – then the stories of failures become instructional lessons more so than...

Look, we love blog posts as much as the next person. (Maybe even a little bit more.) There’s a lot of knowledge startup founders can find on the internet. But when it comes to real deep dives, you can’t beat a good startup book.

“Imagine your personal network was filled with titans of industry — from marketing mavens to business moguls,” Benjamin Evans, startup founder and lead designer on Airbnb’s Anti-Discrimination team tells Startups.com. “How much easier would it be to level up in business and life if you had the best insights available to you whenever you needed them? Well, I believe that’s the value of books. In my ideal world, I’d have a network filled with my role models — from Seth Godin through to Richard Branson — on hand to hel...

Today’s Favorite Find: Jukedeck

Elevator Pitch:

Jukedeck lets you create unique music for your online video.

Why We Love It:

I have watched more startup explainer videos in my life than anyone should ever be subjected to. I mean, it’s a hazard of the job, right? When you write about startups, you inevitably end up watching startup explainer videos. As a result, I’ve seen the full gamut — the good, the bad, the hilarious, and the trying really hard to be hilarious but totally failing. I’ve also seen so many trends come and go. And, of course, I’ve witnessed the ones that just won’t die.

One of those trends with nine lives is, unfortunately, what I call “tinkly” music. (I’m sure it has an official name, but this is my column so I’m allowed t...

What is an angel investor?

Angel investors are typically high net worth individuals who invest very early into the formation of a new startup company, usually in exchange for convertible debt or equity. The role of angel investors serves as a critical bridge between the startup financing needs of a company and their larger capital needs later on.

Who can be angel investors?

In order to be an angel investor, a person does not have to be an accredited investor. However, a lot of angel investors are accredited investors.

In order to be an accredited investor, according to the Securities Exchange Commission (SEC), a person must:

1. Have made at least $200,000 a year (or $300,000, for a couple) for the past two years and must have the expectation...

In a time where lots of people are announcing staff reductions left and right, it's a good time to talk about the most important aspects of dealing with the human element of reductions — Ego and Safety.

When I was a younger manager just learning how this all worked, I didn't understand the value of Ego and Safety. My "fires" turned into heated outbursts, crying, and grandstanding. I couldn't figure out what was going on and assumed these blowups were tied to the people I was letting go.

They weren't — it was entirely my fault. Even though I tried to be kind, I didn't appreciate that letting people go isn't about the transaction — it's about the person. How we manage that relationship is the transaction, and it always maps back to how we vie...

It’s that time of year again! Get ready for all of the year-end lists, advice, and wrap-ups. Every year, we soak that stuff up, but this year, I’m focusing on something different: my team.

Over the years, I’ve noticed a few things as the holidays roll around.

Naturally, people want to take time off with their friends and family. They should. And they should also prepare accordingly by managing client expectations so they can enjoy their time away.

This is also prime time for folks to reevaluate their lives and career goals. As a boss, that means lots of hand-holding and long conversations with employees around career trajectory and promotion possibilities.

At my company, we’re slammed in the fourth quarter. It’s a good problem to have, but ...

Founders need to be as militant about recharging as they are about working.

Yet, nothing in front of us suggests slowing down or taking a break to do it — at all. We have a mountain of work, no one to help us, and we're burning through what's left of our cash and credit. The last thing any of that suggests is "Let's plan a sweet vacation!"

What we're missing in this mess is the fact that it's not about whether or not we want to take a break — it's that we have to. If we're going to run the marathon that is the startup journey, we can't just go full sprint 24x7 and pretend it'll all work out. Instead, we have to become highly regimented in our plan to recharge all the time, and treat that recharge as seriously as we treat our startup.

Move t...

What happens when we've got someone in the organization who’s just simply a bad apple? What's the cost of waiting to address that problem?

It's a tried and true case of the "toxic employee" — and nearly every startup deals with it sooner or later.

What's a toxic employee?

A toxic employee is someone in the organization who absolutely loves to trash the organization, or in some cases just cause nonstop drama.

They can't wait to get into any situation where they can tell anyone willing to listen what a bunch of idiots run the company while insisting that their solution (if they have one) is clearly the answer.

They get their validation from stirring up problems, not solving them.

What's the cost of doing nothing?

The cost of doing nothing ...

How to Create a Founders Agreement for Your Startup

A founders agreement covers everything from ownership structure to intellectual property rights to which the co-founder can make critical decisions over others. In short — every startup needs a Founders Agreement!

But do We Really NEED a Founders Agreement?

Since co-founders are often very familiar with each other, we can easily jump ahead and forget to formalize anything beyond our basic ownership structure. We snap up titles quickly ("You're the Chief Technology Officer! I'll be the Chief Operating Officer!") among all of the founders and go on our way. We're friends, right? That should be enough... right?

Being Friends doesn't Equal a Founders Agreement

And while all that is certainly true, ...