Seeking counsel may be of great benefit in making the various decisions related to starting a company. An attorney with experience in business entity formation and equity considerations can be a reliable and trusted advisor.
Type of company
When incorporating, choose among an S-Corp, C-Corp, or Limited Liability Company (LLC) – or any other type which may exist in your country.
Board of directors and the advisory board
Establish an advisory board early in the launch process. An advisory board should be three to four people who can provide guidance in areas with which the founders are not familiar; for example, raising money, hiring, sales, product development, and manufacturing. A board of directors should include one individual from the company, one or more investors, and independent industry representatives.
Consider each founder’s role in the management team. Generally, a faculty member will have an advisory board role, and a postdoctoral or PhD student maybe the chief technology officer or the vice president of research and development. Other team members may be needed with strong domain expertise, sales experience, and marketing know-how. Investors are usually interested in a company with a strong management team; they are unlikely to fund even the best ideas if the right team is not in place.
Space, insurance, and payroll
Make decisions about workspace, insurance, and payroll right away so that the team can concentrate on building the product and the business. Consider hiring an operations person or an assistant to manage these items, renting shared office space, and outsourcing payroll.