When you're building the next big thing in the startup world, it's easy to overlook some crucial regulatory requirements in your quest for success—especially when it comes to fundraising. 

For decades, Delaware has been the go-to jurisdiction for businesses looking to incorporate in the United States. 

Venture capitalists (VCs) play a crucial role in the startup ecosystem by providing the necessary funding to help emerging companies grow and scale. However, before VCs decide to invest, they must determine the value of the company in question. 

Equity refers to the ownership of a company, typically in the form of stock or the right to acquire stock. While you can't pay employees solely with equity, startups commonly use equity to incentivize their employees and attract talent.

Factors Influencing Equity Awards

A common misconception in the startup world is that venture capital (VC) fundraising grinds to a halt during the summer months. However, data from Carta Market Research challenges this notion, revealing that fundraising activities persist year-round, including during the traditionally "slow" summer period.

When hiring employees, a company should ensure it is complying with applicable federal, state, and local laws regarding employee minimum wages, withholdings, and other applicable requirements.