Entity Formation & IPA Startup Founder Perspective

Paul S. HeirendtStartLouis February 10, 2015

My Startup Journey

As an Intrepreneur

Paul S. Heirendt StartLouis February 10, 2015

Now

As an Entrepreneur Acquired by

Acquired by Acquired by

Acquired by

My Startup JourneyCurrently - St

Louis

Paul S. Heirendt StartLouis February 10, 2015

Currently - California

Reasons for Entity Formation

• Multiple founders

• Hiring employees

• Using contractors

• Liability issues

• Tax issues

• Raising funding

• Creating IP

• Founder/employee incentives

• Launching

• Fast exit

Paul S. Heirendt StartLouis February 10, 2015

Entity Formation & IP Go Hand In Hand

• What is a Startup

• Bootstrap or Raising Capital

• If you are starting a business you are forming an entity - which type?

• If you are creating anything new you are creating IP of some form

• Someone will own that IP - either the individual or the entity

Paul S. Heirendt StartLouis February 10, 2015

Establishing and Maintaining Ownership of IP

• Copyright law is often used to determine ownership rights

• Ownership is inherent in the creation - fixed form

• If you didn’t create it - you don’t own it

• UNLESS - “work made for hire” two forms…

1. work prepared by an employee within the scope of employment

2. if it is specially ordered or commissioned

1. obtain a written agreement

2. Pay them something

Paul S. Heirendt StartLouis February 10, 2015

Commissioned “work made for hire”

• for use as a contribution to a collective work

• as part of a motion picture or other audio-visual work

• as a sound recording

• as a translation

• as a supplementary work

• as a compilation

• as an instructional text

• as a test

• as answer material for a test

• as an atlas

Paul S. Heirendt StartLouis February 10, 2015

Lessons Learned for Getting Started

• Establish who is the core team

• The T’s = Team, Technology, Trajectory & Traction

• Establish strengths and roles - everybody has to be a generalist

• Get Something In Writing - negotiate the structure EARLY

• Find a way to get in front of customers and LEARN

• Fail FAST - Fail OFTEN - Fail GRACEFULLY - YOU MUST LEARN

Paul S. Heirendt StartLouis February 10, 2015

Resources

Steve Blank

Q&AEntity Formation & IP

A Startup Founder Perspective

Paul S. HeirendtStartLouis February 10, 2015