Startup Stock Allocation Guide

Summary

For allocating stock shares in a startup, prepare documents like a stock purchase agreement, cap table, shareholder agreement, and board resolutions. Its advisable to establish your board first to approve stock allocations. Additional documents like bylaws, founders agreements, and employee offer letters are also important. Consider consulting a business attorney for detailed guidance.

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I need to allocate stock shares in my startup, what files should I make?
Hey ****! For allocating stock shares in your startup, you should prepare the following documents:
- Stock Purchase Agreement: Details the sale of shares.
- Cap Table: Tracks ownership and equity.
- Shareholder Agreement: Governs the relationship between shareholders.
- Board Resolutions: Authorizes the issuance of shares.
Do you need more specific information on any of these documents?
for each one, can you given me a template?
Sure ****! Here’s a brief overview of the templates you might need:
*. Stock Purchase Agreement:
- Title: Stock Purchase Agreement
- Parties: Buyer and Seller
- Recitals: Background information
- Terms and Conditions: Purchase price, payment terms, etc.
- Signatures: Buyer and Seller
*. Cap Table:
- Title: Capitalization Table
- Columns:
- Shareholder Name
- Number of Shares
- Percentage Ownership
- Footer: Total shares, date of last update
*. Shareholder Agreement:
- Title: Shareholder Agreement
- Parties: All Shareholders
- Sections:
- Purpose
- Shareholder Rights and Obligations
- Transfer of Shares
- Dispute Resolution
- Signatures: All Shareholders
*. Board Resolutions:
- Title: Board Resolution
- Introduction: Date, and attendees
- Resolution: Details of the decision to issue shares
- Signatures: Board Members
Would you like more detailed templates or further assistance?
what other legal documents should I prepare?
Case Rating: *
Hey ****! Along with the documents already mentioned, you might also consider preparing:
- Bylaws: To outline the internal management structure and operating procedures.
- Founders' Agreement: To detail the roles and responsibilities of the founders.
- Employee Offer Letters: For any employees or future hires.
Do you need a specific template for any of these?
can you give me template in word for each one?
Case Rating: *
Hey ****! While I can't provide Word templates directly, I can outline what each document should include. You can create these templates in Word by using the structure provided:
*. Stock Purchase Agreement:
- Title: Stock Purchase Agreement
- Parties: Buyer and Seller
- Recitals: Background information
- Terms and Conditions: Purchase price, payment terms, etc.
- Signatures: Buyer and Seller
*. Cap Table:
- Title: Capitalization Table
- Columns:
- Shareholder Name
- Number of Shares
- Percentage Ownership
- Footer: Total shares, date of last update
*. Shareholder Agreement:
- Title: Shareholder Agreement
- Parties: All Shareholders
- Sections:
- Purpose
- Shareholder Rights and Obligations
- Transfer of Shares
- Dispute Resolution
- Signatures: All Shareholders
*. Board Resolutions:
- Title: Board Resolution
- Introduction: Date, and attendees
- Resolution: Details of the decision to issue shares
- Signatures: Board Members
*. Bylaws:
- Title: Bylaws
- Sections:
- Name and Purpose
- Membership
- Board of Directors
- Meetings
- Committees
- Amendments
- Signatures: Board Members
*. Founders' Agreement:
- Title: Founders' Agreement
- Parties: Founders
- Sections:
- Roles and Responsibilities
- Equity Ownership
- Decision Making
- Dispute Resolution
- Signatures: Founders
*. Employee Offer Letters:
- Title: Employee Offer Letter
- Sections:
- Job Title
- Employment Terms
- Compensation
- Benefits
- Confidentiality and IP
- Signatures: Employer and Employee
Would you like more detailed information on any specific document?
should I build board first or allocate stock shares first?
Case Rating: *
Hey ****! It's generally advisable to build your board first. This way, the board can approve the allocation of stock shares, ensuring that everything is done in accordance with the company's governance structure.
If you have any other questions or need more details, feel free to ask!