Incorporation
Definition
Incorporation: Incorporation is the legal process of forming a corporation, creating a separate legal entity from its founders. Most VC-backed startups incorporate as Delaware C-Corporations due to favorable corporate law and investor familiarity.
Example Usage
“We incorporated as a Delaware C-Corp before raising our seed round, as required by investors.”
Common Misconceptions
Related Terms
Equity
Equity represents ownership in a company, typically through shares of stock. Founders receive equity at formation, employees through stock options, an...
Cap Table
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