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FAQs
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Which kinds of business requires e-signatures?
What is Digital Signature? And Benefits of Digital Signature CertificatesA digital signature is basically a way to ensure that an electronic document (e-mail, spreadsheet, text file, etc.) is authentic. Authentic means that you know who created the document and you know that it has not been altered in any way since that person created it.Digital signatures rely on certain types of encryption to ensure authentication. Encryption is the process of taking all the data that one computer is sending to another and encoding it into a form that only the other computer will be able to decode. Authentication is the process of verifying that information is coming from a trusted source. These two processes work hand in hand for digital signatures.How do I get a Digital Signature?Digital Signature Certificate (DSC) is a secure digital key that certifies the identity of the holder, issued by a signNowing Authority (CA). There are many companies provide Digital Signature , i.e.SIFYeMudhra(n)codeThese companies gives LRA to several companies that are basically known as LRA. You may directly apply online and purchase from your local authority.signNow - offers a 14 day free trial and 3 types of pricing plans starting from $9.99 when paid monthly. All plans include sending unlimited amount of documents for signature. Available for Mac, iOS, Windows, Android and Web-browser.signNow - offers a 14 day free trial and 2 types of pricing plans starting from $29 when paid monthly. All plans include sending unlimited amount of documents for signature. Available for web-browser, iOS and Android.signNow - offers a 30 day free trial and 3 types of pricing plans starting from $15 when paid monthly. The number of document sends included each month differs by plan type. Available for Web-browser, iOS and Android.signNow - offers a 14-day free trial and 3 types of pricing plans starting from $15 per month when paid monthly. All plans include fair user restrictions to sign documents and send them for signature. Available for web-browser, iOS and Android.signNow - offers a 14-day free trial and 3 types of pricing plans starting from $15 per month when paid monthly. Unlimited document sending is subject to fair use thresholds. Available for Web-browser, iOS and Android.signNow - offers a free trial and 2 pricing plans starting from $16 per month when paid annually. All plans include sending unlimited amount of documents for signature. Available for web-browser, iOS and Android.Digital Signature for E-tenderingThere are three types of digital signature certificates depending on the validation of identity and type of use. They are:Class I DSC – Individuals get it for validating the email identification of the users and in situations where risk is minimal and here the signature is stored in software.Class II DSC – Business organizations or individuals use this digital signature certificate to validate the information given by the subscriber in the application against the information available in a trusted consumer database and in other such situations where security risk is moderate. In this case a hardware cryptographic device is used for storing the signature.Class III DSC – This digital certificate is directly issued by the signNowing authority and it is required that the person applying for DSC must be present at the signNowing authority’s premises and prove his/her identity in front of the authority and the security risk involved in this case is very high. In this case also a hardware cryptographic device is used for storing the signature.The Necessity of Digital Signature CertificatesFor e-filing of the income tax returns by any individual, the Government of India has made it mandatory to affix digital signatures to the income tax returns documents. For affixing the digital signature one must have digital signature certificates issued by licensed certification authority.In addition, Ministry of Corporate Affairs has set the mandatory guidelines for the companies directing them to file all reports, applications and forms using a digital signature only and this again requires a digital signature certificate.For GST also a company must verify its GST application by affixing a digital signature using digital signature certificate in order to get registered for GST.These days many Government procedures, filling different applications, amendments and forms require digital signatures made by using digital signature certificates.Benefits of Digital Signature CertificatesSaves Money & Time: As there is no need of physical presence you can digitally sign your PDF files and other documents using DSC anywhere & anytime. You need not sign your paper documents and then scan them to send them across through internet if you follow the above given option. You can save the money which would otherwise be spent on printing and scanning the document. You can also go green by saving paper.Secured Data: The digitally signed documents are tamper proof as the digital signatures are secured with a private key and public key and they cannot be edited after digitally signing the document.Authentic: Digitally signed documents are authentic and the receiver can be completely sure about the sender’s identity and integrity. The receiver can easily execute the information in the document without worrying about the document being forged.Certificate (DSC) is essential for companies and organizations that take part or intend to take part in eTendering processes on various Government sites. If a organisation going to apply for any Government eTender needs to have a Class 3 Digital Signature Certificate registered in the name of a representative who is authorized to submit online offers for e-Tendering applications.How to apply digital signature ?We enable compliance with legal and regulatory requirements for end-to-end electronic transactions for any kind of E-Business.What Documents required for Class 3 Digital Signature ?Documents required for Class 3 Digital SignatureApplication Form (Duly Signed)Recent Passport Size Photograph (Pasted on the Application form and Signed across the Photo)Identity ProofPAN CARD * (Income Tax F Filing Portal requires PAN Encrypted DSC)PassportDriving LicensePhoto ID Issued by Central Or State GovernmentVoter IDAadhar CardApply for Digital SignatureAddress ProofPassportDriving LicenseLatest Utility Bills - Not Older than 3 Months (Telephone, Electricity, Water, Tax, LIC)Ration CardVoter IDBank Account Statement ( Not Older than 2 Months)Service Tax/ VAT registration CertificateProperty tax/ Municipal tax ReceiptProof of Right to do Business (Any one of the Following)Certificate of IncorporationMemorandum of Association & Articles of associationRegistered Partnership deedValid Business licenses like VAT , Service Tax RegistrationLicense under shop and Establishment Act (For Proprietorship Concerns)PAN Card of the Company/FirmProof of Right to do Business (Any one of the Following)Latest annual Report / BalancesheetLatest Income Tax ReturnsOrganization Bank Details on Banks Letter Head/ Latest Bank statement attested by BankAuthorization Letter in Favor of the applicationAll Documents to be Self Attested by the applicant & Attested by the Authorised Signatory of the Business with Stamp & Seal. For More information about Best Digital Signature company in kanpurDifferent software solutions exist for different platforms, hence I am going to give one (the most common one) for each one of them:Windows: Open the PDF in signNow and click the “Fill & Sign” button in the right pane.Mac: Open the PDF in Preview, click the Toolbox button, then click SigniPhone and iPad: Open the PDF attachment in Mail, then click “Markup and Reply” to sign.iPhone and Android: Download signNow Fill & Sign, open the PDF, and tap the Signature button.Chrome: Install the signNow extension, upload your PDF, and click the Signature button.n short, “best” varies by your specific need - and there are dozens of comparison vectors. The 2 most important, IMHO, are do you needA “standing order” doc that can be easily signed anytime by anyone, such as an injury waiver at a karate school / trampoline park / etc- that sort of thing. The signor is not pre-defined. For that, we (SwiftCloud) may well be best, but there are dozens to compare, and important to consider is volume, HIPAA medical compliance, integration to marketing, etc.Specific doc / signor - such as a real estate sales contract. The parties are pre-defined, and automation can be added to flow from group 1 (say, “the seller(s)”) to group 2 (seller’s agent, for example) to group 3 (the buyer(s) consecutively or concurrently.The #1 reason to use e-signature is to save time + integration on the data i.e. so marketing is 100% automated for example, and reducing time-to-close which results in higher sales pull-through rates. Don’t get me wrong, saving money on paper, printer, ink, printer jams, etc. is important - but that’s a money saver, not a money maker. Marketing and sales will actually create new revenue for you, so to not use electronic signature is for most businesses, downright neglectful. Granted, I’m a bit biased, but happy to do a formal study to prove it with real numbers, should anyone be so inclined.And you are good to go!!
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What is the best way to verify parental consent in order to be COPPA compliant?
COPPA’s “verifiable parental consent” requirement is a hot topic at the moment in light of the FTC’s proposed changes to the COPPA Act. There are many strong opinions on the merits of these proposed changes. As you would expect there are those who believe the proposed changes are too broad and restrictive and others who feel they are too narrow and not restrictive enough. If you are interested you can read the responses to the FTC proposed changed here. You can draw your own conclusions.Opinions aside here are a few relevant points for you to consider:1) Until now, the easiest method for obtaining parental-consent was the “email-plus” method. As Rebecca stated, “email-plus” is not considered particularly robust and has only been acceptable (to the FTC) in certain specific circumstances. However, be aware that the FTC has proposed doing away with email-plus so, should you choose this method you may very well have to change in the future.2) Tom Gosner makes some interesting suggestions for alternative methods based on the premise that they would appear to be more robust, and therefore one would assume, preferable to the “print, sign and fax) method. Although I’m not disagreeing with Tom’s point regarding the veracity of these alternative methods, be aware that these methods are NOT contained on the FTC’s list of acceptable methods (section 312.5(b)(2) of the COPPA Act. You’d be wise to consult with one of the now (5) Safe Harbor organizations approved by the FTC before relying on any method not contained on the FTC’s list.3) There are a number of factors driving the FTC’s proposed changes to the COPPA Act. High on this list are the fact that technology has advanced dramatically since COPPA was originally enacted. Also, a recurring complaint has been that the currently accepted methods for obtaining verifiable parental consent are costly for website operators to implement and cumbersome for parents to comply with. The FTC has challenged the technology community to develop better methods.IMHO the current methods for requesting and receiving verifiable parental consent are too costly and far too cumbersome for them to become widely adopted. The FTC has proposed several new methods in their proposed revisions that I think suffer much the same shortcomings. They will not be widely adopted.What is needed is a web-based verification process that is operationally straight-forward (so operators and mobile app developers can implement it), cost-effective and simple and non-intrusive for parents to use. Email-plus aside, none of the current methods meet this criteria. However, the FTC has reiterated its call (challenge) to the technical community to remedy this situation. All I’ll say here is… STAY TUNED!
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How do I automatically digitally sign a PDF?
Sign PDF Documents Electronically; follow these simple steps Digital signatures software [ https://www.esigngenie.com/digital-signature-solution/ ] will certainly ease all your online form signing processes. Most notably, when you sign forms online, you are protected by an array of security policies and compliances. Therefore, e-signatures can only be said to boost the already existing effectiveness of PDFs. By using services like signNow [ https://www.esigngenie.com/pricing/ ], users can format their PDF files with special formatting fields (such as text fields, date fields, check-boxes, signature fields, and more). This means you can complete your PDF forms and introduce your legally binding signature without difficulties. You can then send the filled up forms via email to your preferred recipients. In short, the subject on how to electronically sign a PDF has been eased to a large extent by electronic signature solutions. It is very simple to get started! * Step 1. Just create an account with your favorite online form signature provider. * Step 2. Upload your PDF document or form to your account. You may have saved it on your computer, or you can retrieve it from one of the numerous apps that e-signs integrate with, like Evernote [ https://evernote.com/ ], Google Docs [ https://www.google.com/docs/about/ ], DropBox [ https://www.dropbox.com/ ], OneDrive [ https://onedrive.live.com/about/en-in/ ] and more. * Step 3. Format the PDF document using the provided formatting fields. Simply drag and drop each field against the relevant section of the document. * Step 4. Complete all the fields and sign the PDF. Key in your information in every section, and introduce your e-signature to make the PDF form legally binding. * Step 5. Send and store. Send the completed forms to the recipient(s) via email. Usually, a copy of the filled out form will be saved to your e-signature [ https://www.esigngenie.com/electronic-signatures/ ] account. In a nutshell, online contract signing especially the PDFs makes it extremely easy to get your most vital contracts and agreements filled out and signed on time, even when you don’t own a scanner, printer, or fax machine.
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What industries must use electronic signature software?
Any industry involving a large amount of paperwork make use electronic signatures. In other words, all industries make use of electronic signatures because all of them have piles of paperwork to handle. Some examples of such industries include financial, life science, healthcare and pharmaceutical industries.Industries such as the pharmaceutical industry, have a number of licenses and other paperwork that they have to handle and keep track of. It can be a tedious task to perform such cumbersome paper processes. Therefore, e-signatures can facilitate an organisation in keeping a track of all this paperwork, by signing electronically.Healthcare industries usually involve time-sensitive documents, which need to be urgently completed. But, it can take days in case of the traditional wet ink paper signatures for the documents to signNow the signer and back, if the parties are geographically scattered. But with electronic signatures, that is not the case. Geographical barriers do not play a role. Documents which earlier needed days to be completed, can now be signed and sent back within minutes, in the click of a button. Furthermore, it takes a long time to bring assets under management. The time taken by the signing process, if wet ink paper signatures are used, may even further delay the process. But by using electronic signatures, the whole process can speed up.Apart from these, there are many paper prone industries which require huge amount of paperwork and with the use of electronic signatures they can make their everyday processes smoother and more efficient.
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Why should I use e-signatures?
One, e-signatures are accepted as a legal signature; andtwo, e-signatures are easier to use and send than printing the form - or part of a form - then signing it - then scanning it - then sending it as an email attachment.
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Can we change the address on a PAN card online? How?
For change of address in PAN, you need to approach NSDL. An excerpt from NSDL is mentioned below. It may be helpful.Income Tax PAN Services UnitIn case of PAN applications from non-individuals, Seal and/or Stamp is not required on PAN application Form 49A or 49AA or Form for Change or CorrectionOnline Application for Request for New PAN Card Or/ And Changes Or Correction in PAN Data (PAN Change Request Form)GuidelinesISTEPS FOR ONLINE APPLICATION(a)Applicant will fill PAN Change Request Form online and submit the form.(b)If the data submitted fails in any format level validation, a response indicating the error(s) will be displayed on the screen.(c)The applicant shall rectify the error(s) and re-submit the form.(d)If there are no format level error(s) a confirmation screen with data filled by the applicant will be displayed.(e)If the applicant requires any amendment to this data, it can choose the edit option, else it shall choose the confirm option.(f)For Changes or Correction in PAN data, fill all mandatory fields (marked with *) of the Form and select the corresponding box on left margin of appropriate field where correction is required.(g)If the application is for re-issuance of a PAN card without any changes in PAN related data of the applicant, fill all fields in the Form but do not select any box on left margin.(h)In case of either a request for Change or Correction in PAN data or request for re-issuance of a PAN Card without any changes in PAN data, the address for communication will be updated in the ITD database using address for communication provided in the application.(i)For Cancellation of PAN, fill all mandatory fields in the Form, enter PAN to be cancelled in Item No.11 of the Form and select the check box on left margin. PAN to be cancelled should not be same as PAN (the one currently used) mentioned at the top of the Form.(j)AADHAARIn case Aadhaar number of Individual applicant is entered in the application form, then proof of Aadhaar along with supporting documents is to be submitted to NSDL e-Gov.If copy of Aadhaar is selected as Proof of Identity/Address/date of birth, then it is mandatory to enter Aadhaar number.In case applicant is ‘MINOR’, Aadhaar of minor should be mentioned in the application form. (i.e. Do not mention Representative Assessee's Aadhaar number)Aadhaar number (if provided) would be authenticated using applicant’s details as mentioned in application form.IIPAYMENT(k)If communication Address is within India(a). The fee for processing PAN application is 107.00 (93.00 + 15.00% service tax).(b). Payment can be made either by- Demand Draft- Credit Card / Debit Card- Net Banking(c) If any of addresses i.e. office address or residential address is a foreign address, the payment can be made only by way of Credit Card / Debit card and Demand Draft payable at Mumbai.(l)If communication Address is outside India(a). The fee for processing PAN application is 994.00[ (Application fee93.00 + Dispatch Charges771.00) + 15.00% service tax].(b). Payment can be made only by way of Credit Card / Debit card and Demand Draft payable at Mumbai.(c). At present the facility for dispatch of PAN cards outside India is available for a select list of countries. Applicants from other countries may contact NSDL at the contact details given in point (ac) below.(l)Demand draft shall be in favour of 'NSDL - PAN'.(m)Name of the applicant and the acknowledgement number should be mentioned on the reverse of the demand draft.(n)Demand draft shall be payable at Mumbai, to be sent to NSDL.(o)Credit card / Debit card / Net banking payment Persons authorized to make credit card / debit card / net banking payment are as below:Category of ApplicantPayment by Credit Card / Debit Card / Net Banking can be made by / forIndividualSelf, immediate family members (parents, spouse, children)HUFKarta of the HUFCompanyAny Director of the CompanyFirm / Limited Liability PartnershipAny Partner of the Firm / Limited Liability PartnershipAssociation of Person(s) / Body of Individuals / Trust / Artificial Juridical Person / Local AuthorityAuthorized Signatory covered under section 140 of Income Tax Act, 1961Applicants making online payment using credit card / debit card will be charged an additional charge of upto 2% (plus applicable taxes) of application fee by the bank providing gateway facility. Additionally, the conversion/exchange rates may also be levied by the card issuing bank, as per prevailing rates.Applicants making payment through Net Banking facility will be charged an additional surcharge of 4.00 + service tax for payment gateway facility.On successful credit card / debit card / net banking payment, acknowledgement will be displayed. Applicant shall save and print the acknowledgement and send it to NSDL as mentioned in point 'IV - Mode of Submission of Documents' below.To check status of online payment or to regenerate Acknowledgment receipt, please click here and fill details accordingly.(p)Applicant shall select appropriate mode of payment and fill relevant details in the application.IIIACKNOWLEDGMENT(q)On confirmation, and in case of credit card / debit card / net banking payment (on successful payment) an acknowledgement screen will be displayed. The acknowledgement consists of:A 15-digit unique acknowledgement numberCategory of applicantPermanent Account Number (PAN)Name of applicantFather's Name (in case of 'Individual')Date of Birth/Incorporation/Agreement/Partnership or Trust Deed/Formation of Body of Individuals/Association of PersonsAddress for CommunicationSpace for Photograph (in case of 'Individual')Payment DetailsSpace for SignatureAadhaar No.Details of Proof of Identity, Address & Date of birth(applicable for Individual & HUF applicants)Acknowledgment will also indicate fields in which change/correction is requested.(r)Applicant shall save and print this acknowledgement.(s)'Individual' applicants should affix two recent colour photographs with white background (size 3.5 cm x 2.5 cm) in the space provided on the acknowledgement. The photographs should not be stapled or clipped to the acknowledgement. The clarity of image on PAN card will depend on the quality and clarity of photograph affixed on the acknowledgement.(t)Signature / Left hand thumb impression should be provided across the photo affixed on the left side of the form in such a manner that portion of signature/impression is on photo as well as on form.Signature / Left hand thumb impression should be within the box provided on the right side of the form. The signature should not be on the photograph affixed on right side of the form. If there is any mark on this photograph such that it hinders the clear visibility of the face of the applicant, the application will not be accepted.(u)Thumb impression, if used, should be attested by a Magistrate or a Notary Public or Gazetted Officer, under official seal and stamp.IVMODE OF SUBMISSION OF DOCUMENTS(v)The acknowledgement duly signed, affixed with photograph (in case of 'Individuals') alongwith demand draft, if any, proof of existing PAN, proof of identity, address & date of birth(applicable for Individual & Karta of HUF) as specified in the application along with any other relevant proof as specified (in Item No.IV - Documents to be submitted along with the application ) is to be sent to NSDL at 'NSDL e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune - 411016'.(w)Super scribe the envelope with 'APPLICATION FOR PAN CHANGE REQUEST--- N-Acknowledgment Number' (e.g. 'APPLICATION FOR PAN CHANGE REQUEST--- N-881010200000097').(x)Your acknowledgement, demand draft, if any, and proofs, should signNow NSDL within 15 days from the date of online application.(y)Applications received with demand draft as mode of payment shall be processed only on receipt of relevant proofs and realization of payment.(z)Applications received with credit card / debit card / net banking as mode of payment shall be processed on receipt of relevant documents (acknowledgement and proofs).VCONTACT US(aa)For more information-Call PAN/TDS Call Centre at 020 - 27218080-Fax: 020-27218081-e-mail us at: tininfo@nsdl.co.in-SMS NSDLPAN
Acknowledgement No. & send to 57575 to obtain application status.-Write to: INCOME TAX PAN SERVICES UNIT (Managed by NSDL e-Governance Infrastructure Limited), 5thfloor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune - 411016Click here for detailed Instructions for filling change request.Click here for detailed Instructions for documents to be submitted.Apply for Changes Or Correction in PAN Data (for DSC users)Pre-requisites for DSC based Application-- Category of Applicant --IndividualPartnership FirmBody of IndividualsHindu Undivided Family (HUF)Association of PersonsLocal AuthorityCompanyTrustArtificial Juridical PersonGovernment AgencyLimited Liability Partnership -
What's the craziest (NDA) non-disclosure agreement you ever heard?
I am answering this question based on an NDA that I reviewed for a client and blogged about several years ago.I’m not sure that “craziest” is the right word. It certainly was the oddest.Quoting a substantial portion of Back to the Future? No, Back to the Past – Ancient NDA Discovered:A client recently was given, and asked me to review, a nondisclosure agreement that made me chuckle because it looked like something left over from decades ago. I was especially surprised because this NDA came from a well-known computer-products company.Some of the document’s more endearing qualities:A difficult-to-read 9-point font that succeeded in fitting the agreement’s text on one page, but for no good reason because the signature blocks required a second page, anyway!Acknowledgment that the parties can “be bound by telecopy signatures”. I suspect that today many people are not aware of “telecopy” (noun and verb) as a predecessor of “fax”. I believe it is a generic term derived from Xerox Telecopier brand desktop fax machines, first produced in 1966 and last models apparently released in 1990 (Xerox Fact Book 2003-2004 – no longer available online).A requirement that, after the “telecopy signatures” are exchanged, “original signatures” must be exchanged. Nowadays, I hardly ever see original signatures on routine agreements, such as NDAs, and even fax is not that common – scan-then- e-mail is routine.The reason this high-tech company uses an old form of NDA: It is a division of a office-products company with “roots [that] stretch back more than a century”.
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How can I incorporate in Delaware without spending money on a lawyer?
Basically a copy + paste job, you say? Documentation fairly standard? If forming a Delaware corporation was this easy, even Unfrozen Caveman Lawyer could do it:With the advent of artificial intelligence and template-based services becoming the norm, the value of using an attorney hasn’t been eliminated, but it has driven the costs of services down (See How much does it cost to incorporate in Delaware? How long will it take? How much is it to do it yourself vs. having a lawyer do it? What are the yearly costs associated? (ie. filing fees, etc.)).First, read this post: A newbie’s guide to incorporating in Delaware.Second, read Legal Concepts for Founders, a publication by Clerky that provides definitions for key startup law terms.Third, if you need more information, please review these steps:(1) Select a Name. Confirm availability of the name chosen for your company (Delaware state web search: https://delecorp.delaware.gov/ti...). Also, if you plan on doing business in any other states, you'll want to make sure you can form under that name in that state as well.(2) Register an Agent. Use the third party service, or have your lawyer choose an option such as Harvard Business Services ($50/yr).(3) Prepare Certificate of Incorporation. Prepare a certificate of incorporation. Any page beyond the first page will cost you $9 per page. Startups generally prefer to issue 10 million shares of common stock. But you will know how to avoid the Delaware tax freak-out and choose a par value - typically a par value of $0.001 or $0.0001 to avoid a large tax bill. One of my former clients DIY'd her Delaware corp and she received a $35,000 tax bill.(4) Have Incorporator Sign and Date the Certificate of Incorporation. Electronic signatures are as good as paper ones, and Delaware accepts documents through e-signature platforms such as signNow, http://h30261.www3.hp.com/~/medi....(5) File Executed Copy of Certificate of Incorporation with Delaware Secretary of State. You can file directly with the Delaware Secretary of State by fax or by mail (see State of Delaware - Division of Corporations ) or through a registered agent service such as The Corporation Trust Company (http://www.ctadvantage.com), Corporate Service Company (Registered Agent Services), or Harvard Business Services. But NOT through email (boo).(6) Receive that filing was accepted by Delaware Secretary of State.(7) Determine Initial Capital Contributions. If there are any items of material value that one founder is bringing to the table that other founders do not have. If a founder is contributing material intellectual property, assets, or other things of value or if any founders plans to contribute more than the minimum amount of cash pre-set to the Company, you'll need to know the tax and legal consequences for their actions.(8) Prepare your Post-Formation Documents, including:Action of IncorporatorBylawsInitial Board ConsentRestricted Stock Purchase Agreements (or Stock Purchase Agreements)Notices of Stock IssuanceIndemnification Agreements83(b) Election FormSubscription LettersConfidential Information and Invention Assignment AgreementsCommon Stock Certificates(9) Collect all signatures for all Post-Formation Documents.(10) Obtain executed copies of your co-founder's Subscription Letters, and, to the extent applicable, Restricted Stock Agreements.(11) Collect all capital contributions from each founder and retain evidence of payment for the Company’s records.(12) Issue Stock Certificates based on your template that prints the applicable restrictive legends on the front page of the certificate.(13) Each Stock Certificate signed and dated by President and the Secretary of the Company.(14) Know difference between delivery vs. retained stock certificates:• Delivered Stock Certificate. If a founder is not entering into a Restricted Stock Agreement and his or her shares are NOT subject to vesting, the Stock Certificate can be delivered immediately to the founder. Of course you need to retain a copy of the Certificate (front and back) for your records.• Retained Stock Certificate. If, however, a founder is entering into a Restricted Stock Agreement and his or her shares are subject to vesting, then the Company would retain that person's Stock Certificate to be held by the Company in escrow pursuant to the Restricted Stock Agreement.(15) File Section 83(b) Notice with IRS. Any founder who is entering into a Restricted Stock Agreement must decide whether or not to file an 83(b) election with the Internal Revenue Service (IRS).(16) File to obtain a Federal Employer Identification Number, which is required of all corporations. See the IRS website for instructions regarding the filing of Form SS-4 (http://www.irs.gov/businesses/sm...). Filing can be completed online.(17) File for State Tax ID. .(18) Securities Law Compliance. Federal and state securities laws may require governmental filings reflecting the issuance of stock to founders.(19) Foreign State Qualifications. You should know that corporations are required to qualify in other US states if they transact business in that state.(20) Prepare a Stock Ledger. You should know to record the issuance of each Stock Certificate and any subsequent transfers and cancellations.(21) Company Recordbook. You should know how to setup and maintain the Company’s records, including a corporate minute book, to hold important corporate documentation (including the Formation Documents).Finally, ask a lot of questions on Quora! There are many great startup lawyers on Quora who are willing to help point you in the right direction without charging their high hourly rates. Please take advantage!SUMMARYSo, forming a corporation is fairly standard but it's not really a copy + paste job.If you want to avoid paying a lawyer altogether, but still want to be provided with the forms necessary to get all this done for $1,000 or less, choose a third party service like Clerky. In the end, it will cost you much more to clean up your operation, but that's okay, because that's how we as cavemen lawyers make a living.Here's how much you can expect to pay for DIY costs and other fees on forming a Delaware corporation.Good luck!
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