Legal & Structural
Corporate structure, governance, and the legal framework that surrounds startups.
16 terms
Beginner
Intermediate
Articles of Incorporation
The founding document filed with the state that legally creates the corporation.
Bylaws
The internal operating rules of a corporation, covering governance procedures and shareholder rights.
Delaware C-Corp
The standard corporate structure for venture-backed startups, incorporated in Delaware.
Fiduciary Duty
The legal obligation of directors and officers to act in the best interest of the company and shareholders.
Founder Agreement
A contract between co-founders defining equity splits, roles, vesting, and IP assignment.
LLC (Limited Liability Company)
A flexible business entity with pass-through taxation, less common for venture-backed startups.
Majority Shareholder
A shareholder who owns more than 50% of a company's voting shares.
Minority Shareholder
A shareholder who owns less than 50% of voting shares and lacks unilateral control.
Shareholders Agreement
A contract between shareholders governing transfers, voting, and other shareholder interactions.
Advanced
Beneficial Owner
The person who enjoys the economic benefits of shares, even if held in someone else's name.
Form S-1
The SEC registration statement a company files to go public via IPO.
Rule 144
SEC rule governing when and how restricted securities can be sold publicly.
Rule 701
SEC rule exempting private company equity compensation plans from securities registration.
Section 1202 / QSBS
A tax provision allowing up to $10M in capital gains from qualified small business stock to be tax-free.
Voting Trust
An arrangement where shareholders transfer voting rights to a trustee who votes on their behalf.
Other categories
Definitions are intended as plain-English educational summaries. Not legal, tax, or investment advice.