Entrepreneurship, Second Edition

12.10. YOUR OPPORTUNITY JOURNAL

Reflection Point

Your Thoughts...

What fiduciary duty do you have to your current employer? Does your proposed new venture rely on proprietary information belonging to your previous employer? Are you materially interfering with your previous employer's business by recruiting away key employees? When should you engage an attorney? What criteria will you use in your decision? What legal form should you choose for your new company (sole proprietorship, corporation, etc.)? What criteria will you use in your decision? What will you name your company? Have you registered your name with the state government? Are there other companies using the same or a similar name (check the U.S. Patent and Trademark Office database)? What provisions should you have in your shareholders' agreement? What kind of salary will you draw? When will you draw it? What provisions do you have for disposition of equity (e.g., upon death, termination, etc.)? What type of equity sharing (if any) will you implement with your key employees? What type of insurance is needed to protect your company? When will you secure this insurance?