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Startup Legal
Mechanics

Setting up the right legal structure for your startup

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Main Learning Objectives
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● Explain the legal

mechanics for startups

● Develop a plan for setting

the right legal mechanics
for your startup

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 Review of What a Startup Is... 20
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A startup is a business in its early

stages that seeks to disrupt the
market with an impactful business
model

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What Are Startup Legal Mechanics?
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These are the legal structures put

in place to guide the legal
operations of a startup.

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Elements of Startup Legal Mechanics

1. Incorporation
2. Post-Incorporation

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Incorporation
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a. Register with the Corporate Affairs Commission

b. Form a board of directors.
c. Appoint corporate officers. President, CEO, etc
d. Meet regulatory obligations for your startup
e. Open a corporate bank account

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Post-Incorporation 20
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a. Employment: Founders should be employees of their
company and earn a minimum wage at least.
b. Adopt bylaws
c. Develop necessary legal documents
- See (legal templates here; and
- A summary guide of key legal documents here)

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Benefits of Legal Mechanics for Your 20
Startup
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Avoid tax liability

Avoid civil liability

Avoid personal liability

Liability - the state of being legally responsible for something.

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Advise 20
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Consider hiring or outsourcing your startup

legal requirements to a startup lawyer as this
will save you hours of poring over documents
and free up time for you to actually work on
your business

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 In-Class Activity 20
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You need a legal blueprint of what you will need along your way to startup
success.

TASKS
1. Think through and develop a list of the legal
documents you require in your company

1. Also list the regulatory requirements you

need to meet to be law abiding

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Additional Resources 20
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Check the legal health of your startup at these websites

1. http://www.startuplegalcheckup.com/#

1. https://zegal.com/legal-health-check/

1. https://try.lawpath.com.au/lhc-form/

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Food for thought 20
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“Your business values can

make you soar above the
competition.”
Doris Perdue-Johnson

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ANY
QUESTIONS?

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