Edit: lawyer is not “bad”, I was just listening to the wrong people and did not hire or speak w a financial consultant to help me understand the process fully. I’ve learnt more here on this post than I have in the last six months of figuring this thing out so although I came in hot, I am glad I got so many responses that have now steered me in a better direction and given me greater understanding of where the miscommunication happened with my lawyer, and how the “mistakes” are stem more me not knowing what was going on. Will definitely read up and look into the resources many of you recommended!
~~~ Original
Was working with a well recommended legal firm/lawyer (east coast) for filing our c-corps and issuing preferred stock. The lawyer went off and gave one founder 90% equity with a 10% “pool”. This isn’t some LLC it’s a c-corp built for issuing shares. We are currently building our founders team, issuing shares via friends and family, building a board, and intend to raise a round next year. I was under the impression founders get 50%, about 30% is saved for first investors, 10% for first board members/advisors, and then there is a 10% pool.
We’re bringing on the founding team and the lawyer is acting so “surprised” that he has to refile alllll the documents to accommodate new team members and their preferred equity needs. And then he has to bill $200/hr for “all the additional time it’s gonna take him”
This is his problem right? Like I thought this was pre-product pre-money start ups 101?
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