Hello,
I’m about to incorporate a new Delaware C Corp for a SaaS product, and was hoping to get some advice on stock assignment and 83b election. I have a cofounder and we’re doing a 55/45 split to start with, which will obviously get diluted as we get investors and more team members.
My questions are:
- Do we need to assign stocks to the cofounders immediately after incorporation? Or can we wait for 2-3 months till we get some customers and perhaps investors?
- If we should do the stock assignment right away, then should we divide the entire 20 millions stocks or do it partially and reserve the rest for investors?
- If we get investors, then there will likely be a vesting schedule that we will have to follow - can we do the stock assignment and 83b election then?
- Without doing the stock assignment, is it okay to accept payments into the company bank account?
Thanks in advance for the help!
Most C corps start by establishing director(s) who must then unanimously approve (usually by unanimous written consent) an organizational consent to appoint officers, establish officer authority (such as control of the bank account), approve the issuance of stock, and more.
83(b) elections must be filed within 30 days of issuance or you’ll recognize income upon vesting.
Should we establish a vesting schedule even if there are no investors in the picture at the moment?