Post by Founder University

Poor legal hygiene can quietly kill startups before they ever reach "Series A." This week at Founder University, Andrew Sparks of Goodwin tackled the legal mishaps that can turn small oversights into existential problems. Here is Andrew’s Legal 101 for startups: • File your 83(b) election within 30 days of getting your stock, or face tax penalties! • QSBS (Section 1202) can make your first $15M of gain federally tax-free, with the right structuring • Put vesting on founder shares from day one (4 years, 1-year cliff), it protects founder and investor equity. • Watch for "dead equity" a departed founder holding 20–30% can block your next round Thanks Andrew Sparks and the Goodwin team for the masterclass 🙏 Want to dive deeper into startup legal, fundraising, and everything in between? Apply to Founder University: Founder.University/apply