I am starting a software business and I am not entirely sure how to proceed with incorporation and drafting an operating agreement.

I have one co-founder and we’ve been working together for a few months validating our product with our target market but have not started building. We are ready to start building but we’d like to have a business entity set up with a business bank account so that everything can stay organized under the business.

We’re not sure where to start or who to work with. I’ve found some start-up attorneys through Google searches and have considered options like Stripe Atlas and Clerky but I’m not sure how important it is to have a lawyer handle everything vs. an automated “service”.

Does anyone have experience finding the right attorney to work with or using a service like Stripe Atlas?

  • LiJiTC4@alien.topBEnglish
    1·
    10 months ago

    Is this your first startup? A lawyer may be worth the investment since they can help you game plan how equity is structured. This can materially impact any rights, responsibilities, and even eventual control of the company. Examples:
    -Are you going to leave unissued equity?
    -Will there be equity preferences for founders?
    -Antidilution clauses for investors?

    I would recommend an attorney who specializes in startups in your industry. They’ve usually seen most of the worst types of mistakes and can help you avoid them.

    BTW, Corporations have bylaws, LLCs have operating agreements. Those terms are not interchangeable since they refer to completely different legal entities.