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Top 10 Legal Mistakes Startups Make

In his slides for the PSU Lab2Market program, Jon Summers of the law firm White Summers identifies the following top-10 mistakes from a legal perspective that startups make:

10. Missing 83(b) Election Deadline

9. Selling Stock to Non-accredited Investors

8. Forming Entity as S Corp or LLC instead of C Corp

7. Failing to Register Stock Option Plan

6. Waiting too long to Form Entity

5. Failing to Vest Founders Stock

4. Bringing in Tainted People

3. Disclosing w/o a Sufficient non-discloure agreement

2. Not getting a non-compete signed before an employee starts work

1. Waiting for Funding to Fix Problems (don’t wait; fix them!)