

Startup Law 101 - What it means to own x% of a company - grellas
http://www.grellas.com/faq_business_startup_010.html

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andrewljohnson
This is a good concept to understand before you start chopping up the company
:)

George represents my company TrailBehind.com, and I'd recommend his firm to
anyone looking to found a start-up. George's firm deals only with founders
(and not VCs), which is not so common a thing in the valley.

He gives good practical advice (like you can read in this article), and the
firm bills very fairly and transparently.

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gizmo
Great article. Precise and still void of legalese.

Another way to reason about ownership of a company where two founders have 1
million shares each out of 10 million authorized shares goes like this:

The company owns the remaining 8 million shares. So when a founder has N% of
the issued shares, he indirectly owns N% of the shares owned by the company
(remaining authorized shares), bringing his "effective" shares to 1 + 4 = 5
million. 5 out of 10 million shares, so he owns 50% of the company.

