May 22, 2014. I founded the Goosmann Law Firm. I formed the Professional Limited Liability Company, I wrote the business plan, I hired the first employee, I was the first lawyer, and today I am the CEO and managing partner. No question, I am the founder. There is much confusion over what makes someone a founder, and whether it has any legal significance. A founder is really nothing more than a designation that the original promoters of an idea bestow on one another to identify to the world who is credited with getting the company off the ground. Often, a key hire may come in well after the company has been formed and in the end be described as a founder. Being a founder has no legal significance per se unless an agreement is created that provides significance to the founder in the form of founder’s rights. Venture capitalists often require the founders to make certain representations and warranties individually at the time of the first round of investment. In addition, certain restrictions may be placed on founder’s stock on the theory that the founders really constitute the brain trust. Similarly, as the brain trust, the founders may demand certain preferred options and buy-outs. With all that said, am I calling myself the brain trust of the Goosmann Law Firm? You bet I am!
For more information about business law, or how to become a "Founder" yourself, contact the Goosmann Law Firm at info@goosmannlaw.com or call 712-226-4000.
Follow Jeana Goosmann on Twitter @JeanaAtGLF!
