Purpose of Family and Friends Funding

Family and friend funding is often used to start a business.

Here are some key uses of funding at this stage:

File the legal entity paperwork for an LLC, not a Delaware C corporation. 

You can file for a Delaware C later if the business takes root.

This gives your business an EIN (entity identification number) with which you can open a bank account.

Set up the accounting books with a low-cost internal solution.

It’s important to track expenses and revenues from day one.

File a wordmark for your company name.

This prevents others from setting up a company with the same name.

Build a simple website.

In today’s world, if you don’t have a website, you don’t exist.

Keep the website to just a few pages so those who look for you and your company can find your website and get in contact with you.

Print business cards.

Start early promoting the company as it takes time for the word to spread.

Finally, file a number of provisional patent applications.  

The cost is low and it gives you a year to figure out which patents are going to be of value.

Set up the startup so it looks like a real business.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

---

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Copyright (c) 2024, Hall Martin and investorconnect.org. All rights reserved.

Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.