This article is a follow-up to “Early-Stage Financing and Convertible Notes.” This article will provide a broader understanding of the convertible note structure and the mechanics of convertible notes.

You know that you should file applications to register your trademarks, but you are still some months away from launch, and you know that under U.S. law, in order to get a federal trademark registration, you must swear to and demonstrate use of your mark in commerce. How can you protect your marks to ensure that you will have the right to use them when it is time to launch?

I often encounter first-time entrepreneurs arranging their first round of outside capital. More often than not, this is the friends and family round of financing (Often called the friends, family and fools round of financing). In fact, for most non-tech startups, the friends and family of the founding team will be the sole source of outside financing.

When there is more than one founder of a new venture, the issue of an equitable division of the equity pie should be at the forefront of their planning. The bottom-line is that not all founders are created equal. As such, these inequalities should be reflected in the way founders’ shares are distributed. Nevertheless, this only addresses part of the issue brought about by the distribution of founders’ shares. All founders should consider what would happen if one (or more) of their co-founders departed the new venture for a better opportunity?

Over the past month, I have dealt with several new clients that have unnecessarily cost themselves time, headaches and money because they tried to avoid spending money on attorneys at the early stages of their companies. These folks all turned out to be penny wise, but pound foolish.